An Asia-based firm has been granted a two-year exclusivity period to bid for Birmingham City by the club's Hong Kong-based parent company.
After months of speculation, Birmingham International Holdings Ltd has made a statement to the HK Stock Exchange announcing that Trillion Trophy Asia Ltd has become the preferred bidder.
Trillion Trophy has promised the club a loan facility of £12.5m.
That will be secured against the club's 109-year-old home at St Andrew's.
|"It seems like an incredibly long period, but this is to give both parties space to strike a deal for the sale and is not a guarantee that a takeover will happen. It does stop others from trying to muscle in though."Nick Clitheroe (BBC Midlands Today)|
The club will also get an initial deposit of £880,000 as security for their bank loans with HSBC in the UK.
If they fail to come up with either of these sums the exclusivity period will be terminated.
Ernst & Young, the receivers who have been running Birmingham International Holdings Ltd since February, had already stated that seven different offers have been made, one of which was then shortlisted.