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

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter