May 4 (Bloomberg) -- Premier League soccer team Birmingham City’s holding company raised HK$49 million ($6.3 million) by selling a 6 percent stake in a share sale.
Birmingham has been trying to raise funds after parent company Birmingham International Holdings Ltd. said earlier this year its liabilities exceeded assets by about HK$348 million. A fully underwritten share sale in March raised HK$87 million.
Carson Yeung remains the biggest investor in BIH, according to a filing today to the Hong Kong Stock Exchange, although his stake falls to 23.3 percent from 24.9 percent. That’s controlled through a personal holding and his company Great Luck Management Ltd.
The filing said 250 million shares, representing 6.43 percent of the company, were sold at 20 HK cents each to more than five parties who aren’t connected to the company or to anyone linked to it.
Birmingham’s long-term financial structure is being examined by the Premier League after auditors for the team cast doubt over its future.
The club also needs to convince European soccer’s governing body about its finances. It qualified for the Europa League after beating Arsenal in the League Cup final in February for its first major trophy in 48 years. UEFA’s club licensing policy requires teams with questionable accounts to explain how they will continue to operate.
Birmingham is 15th in the 20-team Premier League with three games remaining. It would be relegated to the second division should it finish in the bottom three.
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