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

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter