The American financier and his company, Knighthead Capital Management, has agreed to purchase a 45 per cent stake in Blues under Shelby Companies Limited.
Birmingham and Wagner still need the Hong Kong Stock Exchange to confirm the deal before it is officially completed with the club’s parent company, Birmingham Sports Holdings Limited, having been looking for investment.
A club statement read: “The English Football League (EFL) has today approved the acquisition of 45 per cent in the Club by Shelby Companies Limited and is now awaiting approval in accordance with the rules of Hong Kong Stock Exchange.
“This exciting announcement comes after the exchange of two signed Sale and Purchase Agreements (SPA) on Sunday, 7 May.
“Shelby Companies Limited is managed by American financier, Tom Wagner, who was in attendance at Blues’ final game of the 2022/23 Sky Bet Championship season against Sheffield United.”