Seems VT Is Busy Back Home In Malaysia

Looking at ways to raise cash including the possible listing of Cardiff City and his 7-11 franshise business.

http://www.themalaysianinsider.com/busi ... -7-eleven/
http://www.btimes.com.my/Current_News/B ... a/Article/

That 7-11 business is worth a few bob but the thing that interested me was his comment that he had invested so much he now needed to look at ways of raising money to pay the banks.


I'm no accountant but could this mean he has borrowed the money he has "Invested" in Cardiff City. My understanding of a retail business like 7-11 is that they tend to be cash cows a result of selling products before they pay thier suppliers, so besides start up costs they wouldn't need the same day to day financial support like a football club.

Bit worried reading that because I have always believed VT has used his personal money to invest in Cardiff City, surely we haven't got another Langston waiting in left field.





######### Edit by Gavin - Walesonline reporting ############

Vincent Tan has confirmed he could be ready to sell shares in Cardiff City on the Malaysian stock exchange.

The billionaire, who owns 36.1 per cent of the Bluebirds' shares and has poured millions of pounds into the club by way of loans, said the move could come by the end of this year.

The convenience store 7-Eleven, the franchise for which Tan owns in his home country, could also be listed.

Speaking in Malaysia, Tan was quoted as saying: "We will consider.

"We are looking at several options to raise money to pay the banks. I have invested so much, so now I need to raise some money. Listing is one of the options,"

"Listing is one of the options, but nothing is firm or definite yet."

Tan's comments come just over a week after first reports of the proposal surfaced in Malaysia following the Bluebirds' promotion to the Premier League

It would follow Manchester United’s debut on the New York Stock Exchange last year, which raised £154.4m.

According to initial reports, the plan would be to list on the Kuala Lumpur Stock Exchange – renamed Bursa Malaysian in 2004.

The initial public offering (IPO) – which would see a certain number of shares sold rather than the entire club – is reportedly in its early stages, with details on the “timing, size and listing venue subject to change”.

Premier League football is expected to quadruple Cardiff City’s revenue to about £80m next season, thanks largely to the bumper television broadcast rights deal.

Even if the Bluebirds are relegated after just one season in the top flight, the club would receive parachute payments of about £60m spread over the following four seasons.

Cardiff City’s latest set of financial accounts, however, show the club made a £13.6m loss last season, bringing the total debt to £83m.

Keith Morgan, a Cardiff City supporter and director at international accountancy firm Mazars, said an IPO would be one way of Mr Tan getting a “big return” on the money he has loaned the club, which he believes to be about £60m-£70m.

“But the benefit for the club is that in order for Vincent Tan to make money that way he will have to write-off the loans and convert them into shares,” Mr Morgan said.

“That would make Cardiff City much more attractive to potential investors, especially as a Premier League club.

“The problem with football clubs is there is no guaranteed income stream. Football is a very volatile income stream. In the Championship, Cardiff City’s total income was £20m. In the Premier League that income goes up to £80m.

“If you get relegated, yes you do get parachute payments, but your income falls of the a cliff, say from £80m to £40m. Normally the stock exchange investors are in it for the long-haul.

“If you invested in Manchester United there is very little risk of them getting relegated and therefore losing a high proportion of their income. Whereas Cardiff City, or Swansea City, there is a very real risk.”

I am amazed if he didn't borrow money to invest. I thought this was well known? It's why I've always laughed when people have said he's put his own money into the club.

I am amazed if he didn't borrow money to invest. I thought this was well known? It's why I've always laughed when people have said he's put his own money into the club.

Exactly.

He's done a Hicks & Gillett here and if it doesn't pay off we're screwed and he'll lose loads himself. Lets just hope he can raise the cash to pay off the loans + interest.

He would be guarantor on the loans, it wouldnt be his personal wealth.

I am amazed if he didn't borrow money to invest. I thought this was well known? It's why I've always laughed when people have said he's put his own money into the club.

Exactly.

He's done a Hicks & Gillett here and if it doesn't pay off we're screwed and he'll lose loads himself. Lets just hope he can raise the cash to pay off the loans + interest.

He only owns 30% of Cardiff City, he can't borrow a great deal against the club so no need to worry too much on that count

I am amazed if he didn't borrow money to invest. I thought this was well known? It's why I've always laughed when people have said he's put his own money into the club.

Exactly.

He's done a Hicks & Gillett here and if it doesn't pay off we're screwed and he'll lose loads himself. Lets just hope he can raise the cash to pay off the loans + interest.

He only owns 30% of Cardiff City, he can't borrow a great deal against the club so no need to worry too much on that count

He's keeping the club alive solely himself as the main investor. If his finances go BANG, unless we find another investor to take over and plug the financial void in the club then we're going BANG as well. TLG has summed it up on the other board.

Could this be the forst step towards the debt to equity conversion?

Could this be the forst step towards the debt to equity conversion?

Yes Gav. Its likely but it'll only happen depending on the predicted outcome by financial analysts of floating us on the SE. If Tan gets given the go ahead by them then I think he'll then go through with the conversion. Once thats done the club will become a more attractive prospect and it'll then be floated. Its all going to come down basically to what the financial experts say.

Its also plausible to say that the rebrand was for this moment. Us being in red makes us attractive to potential investors in Asia given the meaning of it over there. People will deny this but Peter Lim has a chain of United restaurants and wanted to buy Liverpool. Both are red.

I honestly think the future is bright for our club, I dont think that VT will be around too much longer, I dont think hes the kind of man used to having every decision he makes torn apart, he might just cash out and allow a new investors to take over.

Peter Lim is a name that wont go away.

Could this be the forst step towards the debt to equity conversion?

Still think settling Langston we be key to the debt to equity conversion but when you consider what that 49% of that 7-11 franchise is worth it goes to show just how deep this guys pockets are.

I'm no accountant and freely admit I don't understand "High Finance" but if only part of the monies he makes from selling his 49% of his 7-11 business then he could clear our debts, convert debt to equity, have the balance sheet of our club looking far healthier and be well placed for making even more money listing our club.

In business terms the guy is no fool and it is hard to put a reasonable argument that he hasn't put our club on a completely different level to the one he invested in 3 years ago.

I would far rather have an announcement that agreement has been reached with Langston than we have signed this player or that player as, in my opinion, it will be the catalyst to take us forward in one huge step.

Your spot on (as always), signings would be good news but the debt to equity conversion would be the final step in leaving behind our old reputation as a debt ridden low league club and transform us into a debt free premier league club with state of the art facilities in the making. Its a crying shame that VT has done away with the blue home kit, but theres no doubt that he has an agenda in doing so, I honestly do not believe that 'being lucky in red' comes into it, he has an investor in mind to take over the reigns from him allowing him to walk away in profit, as he always has in the past with his previous business ventures.

Your spot on (as always), signings would be good news but the debt to equity conversion would be the final step in leaving behind our old reputation as a debt ridden low league club and transform us into a debt free premier league club with state of the art facilities in the making. Its a crying shame that VT has done away with the blue home kit, but theres no doubt that he has an agenda in doing so, I honestly do not believe that 'being lucky in red' comes into it, he has an investor in mind to take over the reigns from him allowing him to walk away in profit, as he always has in the past with his previous business ventures.

With 30% of clubs in the PL next season having a Red playing strip VT will have to hope we have "An Even Luckier Red" to help us.

This is going ti blow up in our faces i can see it coming! We will be left wit ha red kit, huge debt back in the championship struggling with shit players if he doesn't manage to find investors and reduce our debt..... Just using our club as another little investment for himself by re branding us for the Asian market and they getting a few bob for it :/ ..

This is going ti blow up in our faces i can see it coming! We will be left wit ha red kit, huge debt back in the championship struggling with shit players if he doesn't manage to find investors and reduce our debt..... Just using our club as another little investment for himself by re branding us for the Asian market and they getting a few bob for it :/ ..

Nobody is going to buy serious amounts of shares in a club with huge debts, he'll do the debt to equity exchange prior to floatation in my opinion

The only people in Asia who would buy shares in the City is me and my mate who lives in Hong Kong who is also from Cardiff

There is no value in Cardiff City to institutional investors

Ask yourself how many premier clubs are profitable?

This is going ti blow up in our faces i can see it coming! We will be left wit ha red kit, huge debt back in the championship struggling with shit players if he doesn't manage to find investors and reduce our debt..... Just using our club as another little investment for himself by re branding us for the Asian market and they getting a few bob for it :/ ..

Nobody is going to buy serious amounts of shares in a club with huge debts, he'll do the debt to equity exchange prior to floatation in my opinion

Ohh that does sound like something tan would do mind.... think you got it there :/

The only people in Asia who would buy shares in the City is me and my mate who lives in Hong Kong who is also from Cardiff

There is no value in Cardiff City to institutional investors

Ask yourself how many premier clubs are profitable?

Very good point.

That's why I think there is something more to this proposed floatation. May be he'll use Cardiff Bet to break into the lucrative betting market?

Of course the conversion will come before the flotation...why is that even being discussed? Without the conversion the club is in no way attractive to any investor. First will come a financial analysis and then if given the go ahead the conversion will take place. After that the company will be floated.

Flotation is no guarantee of a good thing either. It was a disaster for Facebook. Its a gamble and here we go again, the Cardiff City circle jerk continues. Lets just hope this is a gamble that finally pays off.