THE Hong Kong Stock Exchange has thrown down the gauntlet to Blues owners Birmingham International Holdings – and called for a breakdown of the circumstances behind the arrest of Carson Yeung.
Far East finance experts have demanded that Blues parent group provides “all material information” relating to the arrest of Yeung as one of the key conditions for the eventual resumption of share trading in BIH. Yeung was arrested last summer and charged with five counts of money laundering totalling £59 million covering a six-year period from 2001.
In an announcement to the Stock Exchange, BIH said: “Training in the shares has been suspended from 9am on June 30, 2011, and will continue to be suspended until further notice.”
The Blues owners said they were ordered to:
* Inform the market of all material information about the arrest of Yeung – including the implications on the group’s operations, assets and financial position.
* Demonstrate that there were no deficiencies in control due to the arrest and there was no reasonable regulatory concern about management integrity which could pose a risk to investors and damage market confidence.
The Stock Exchange also ordered BIH to publish its outstanding financial results and address any concerns raised by auditors.
BIH said: “The company has been, and is continuing, to take the appropriate steps to fulfil the conditions set out for the resumption of trading in the shares and will keep its shareholders and potential investors informed of the progress as and when appropriate.”
The clampdown by the Stock Exchange came less than three months after the parent group issued a profit warning, blaming a “substantial loss” on Blues’ relegation from the Premier League last season.
The holding company also announced in October that its annual results for the year to June 30, 2011, would be delayed further for three months to January 31, while the annual report would not be issued until February 15.