BILLABONG TAKEOVER SAGA DRAGS ON

Written on the 24 April 2013

BILLABONG TAKEOVER SAGA DRAGS ON

BILLABONG drawn out takeover speculation is set to drag out further after the company’s shares were voluntarily suspended from trading this morning.

Shareholders were expecting some news today from the Gold Coast-based sportswear group regarding two potential takeover bids that have been hanging over the company since January.

The company called for a two-day trading halt of its shares on Tuesday, raising some hope that an announcement would come from the company soon.

But this morning Billabong sought a voluntary suspension of trading in its shares, saying it needs more time to continue negotiations with the bidders.

“The company requests that the suspension remain in place until such time as the company is able to make an announcement in relation to such negotiations,” Billabong says in a statement to the Australian Securities Exchange.

The share suspension places a cloud over the timing of a takeover bid announcement from Billabong as suspensions are indefinite.

Some sources suggest that Billabong may have sought the suspension to give one of the bidders time to present their offer.

One bid is coming from US clothing giant VF Corporation and Altamont Capital Partners and the other from Paul Naude, the long-time boss of Billabong’s American operations, in conjunction with private equity firm Sycamore Partners.

The VF-Altamont bid was rumoured to be in jeopardy last month, a rumour that was scotched by Billabong which revealed both offers were still in train.

Some sources are now suggesting VF-Altamont has yet to secure full debt funding for a bid and that Billabong would want two competing offers on the table if it is to extract any value from the bid process.

Both bids were originally pitched at $1.10 a share, or $527 million, but since the offers were revealed in January Billabong’s shares have slipped to a low of 63c.
They last traded at 73c, with many analysts now forecasting offers could be presented around 80c a share.

Investors also have been rattled by repeated profit downgrades by the company over the past year, culminating in a net loss of $536.6 million for the December half year.

Billabong is forecasting a downgraded underlying profit of between $74 million and $85 million this financial year.

Billabong could not be contacted for comment.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

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