BILLABONG REJECTS TPG TAKEOVER

Written on the 27 February 2012

BILLABONG REJECTS TPG TAKEOVER

BILLABONG International today rejected a $3 per share take-over offer from US private equity giant TPG.

Gold Coast Business News understands the final decision rested with Billabong founder and majority shareholder Gordon Merchant.

It follows confirmation of a revised non-binding proposal today by TPG to acquire all shares in the company. The revised proposal was at the same price of $3 cash per share, but did not preclude the transaction with US watch brand Nixon announced on February 17.

The board, together with its advisers, has reviewed the TPG proposal in detail and concluded the proposed price did not reflect the fundamental value of the company in the context of a change of control.

Chief executive Derek O’Neill was unavailable for comment, but in a statement the company confirmed that its founder Merchant would not accept an offer of $3 per share for his shares and that the price is significantly below the underlying value of the company.

It is not known at this stage whether ongoing discussions will result in an improved proposal from TPG.

Billabong has ridden the highs and lows with shares once hovering at $16 per unit.

After dropping to $1.76 last week, they are now trading at a bit over $3.

Last week Billabong announced a capital restructure plan following a 70 per cent free-fall in half year profit and subsequently sold part of Nixon to pay down debt.


Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter