HK shares of Birmingham City football club owner dive on resumption after 2-year halt (updated)

Zo Future

17/10/2016 06:13

* Birmingham International shares slide as much as 45 pct 
    * After rebound, down 28 percent at midday break 
    * Ex-chairman Yeung jailed in 2014 for money laundering 
    * Firm has restructured, brought in new investors 
 
 (Adds details, context) 
    HONG KONG, Oct 17 (Reuters) - The Hong Kong-listed owner of 
English football club Birmingham City lost nearly a third of its 
value on Monday as the stock resumed trading after a near 
two-year suspension over a financial scandal that saw 
ex-chairman Carson Yeung jailed.  
    Shares in Birmingham International Holdings Ltd  2309.HK  
skidded as much as 45 percent when trading opened, hitting a 
record low of HK$0.51 before rebounding. At midday break, the 
shares were down 28 percent at HK$0.62 each, valuing the firm at 
about $328 million. 
    Hong Kong businessman Yeung's story has been seen as 
something of a cautionary tale for investors amid a broad push 
into the international football business by big-name Chinese 
firms like Dalian Wanda.  urn:newsml:reuters.com:*:nL3N1CD2OM  
    Yeung was sentenced to six years in a Hong Kong jail in 
March 2014 after being convicted of money-laundering involving 
some HK$721 million ($93 million). Since then, Birmingham has 
restructured and brought in new investors: Hong Kong businessman 
Paul Suen agreed in June to buy around 60 percent of the firm, 
and Yeung's stake has been cut to below 7 percent from about 28 
percent. 
    As part of the restructuring, the company also appointed 
Zhao Wenqing as chairman and chief executive officer, while six 
former directors have resigned.  urn:newsml:reuters.com:*:nFWN1CK0G9   
    Birmingham said in a securities filing on Oct. 14 that 
police were still investigating at least HK$37.5 million of 
missing funds, of which HK$35.25 million was suspected to be 
misappropriated by a former employee. It didn't disclose the 
name of the employee in question.  urn:newsml:reuters.com:*:nFWN1CK0G9 
  
($1 = 7.7576 Hong Kong dollars) 
 
 (Reporting by Donny Kwok; Editing by Simon Cameron-Moore and 
Kenneth Maxwell) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: BIRMINGHAM INTL STOCKS/