BILLABONG TAKEOVER BID OFFICIAL

Written on the 21 February 2012

BILLABONG TAKEOVER BID OFFICIAL

BILLABONG International shares are inching toward the $3 mark – the price formally offered by US private equity firm TPG Capital.

While speculation regarding the takeover bid recently caused frenzy, negotiations were halted by the company’s decision to sell-off a portion of its top-performing US watch brand Nixon to pay down debt.

However, the Billabong board confirmed the deal was still on the table.

“The Board of Directors of Billabong announces that before market opening today, it received a non-binding, indicative proposal from TPG Capital to acquire all of the shares in the company for $3 cash per share by way of a scheme of arrangement,” it said in a statement.

“The proposal is subject to due diligence, subject to finance and conditional on a number of other matters, but it does not preclude the Nixon transaction.

“The Board of Billabong will consider the proposal and advise shareholders of its views in due course. In the meantime, Billabong shareholders do not need to take any action in response to the proposal.”

Billabong has appointed Goldman Sachs as financial advisors and Allens Arthur Robinson as legal advisors.

It comes after the Gold Coast’s largest ASX-listed company announced it would close up to 150 stores and shed hundreds of jobs in a capital restructure plan following a 70 per cent free-fall in half year profit.

Billabong shares jumped 30 cents to $2.92, valuing the company at close to $740 million. Executives believe the stock, which took a pummelling before December, is under-valued. It was worth around $4 before the December downgrade and $8.55 this time last year.


Latest News

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

ANSELL'S SHARE PRICE SWELLS AFTER SALE OF CONDOM BUSINESS

IT'S one of Australia's most successful and enduring manufacturing success stories and the Ansell condom busi...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

SIGMA'S SHARE PRICE TAKES A BATTERING AS IT LAUNCHES LEGAL ACTION OVER SUPPLY DEAL

SIGMA Healthcare (ASX: SIG) has taken the MyChemist and Chemist Warehouse chains to court to demand they continue to ...

Related News

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

SIGMA'S SHARE PRICE TAKES A BATTERING AS IT LAUNCHES LEGAL ACTION OVER SUPPLY DEAL

SIGMA Healthcare (ASX: SIG) has taken the MyChemist and Chemist Warehouse chains to court to demand they continue to ...

REGIONAL BANKS HIT OUT AT RATING CUT AND WARN BIG FOUR WILL BENEFIT

REGIONAL banks have hit out at a downgrade on their credit ratings, warning that it will increase their wholesale fun...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter