BILLABONG TRADING HALT AS BIDS CONSIDERED

Written on the 4 April 2013

BILLABONG TRADING HALT AS BIDS CONSIDERED

GOLD Coast sportswear group Billabong has until Thursday to reveal details of two takeover offers that may have been placed on the table by two US suitors.

The company this morning requested a two-day trading halt on its shares pending an announcement on the bid process which has been hanging over the company since early this year.

“The trading halt is requested following receipt of proposals in relation to the process announced on January 14,” Billabong says in a statement to the Australian Securities Exchange.

“The company announced at the time of its half-year results that it expected due diligence to conclude at the end of March.

“Discussions in relation to these proposals remain incomplete and the company expects to make an announcement as and when discussions are complete.”

The statement from Billabong gives little away.

The company has received one indicative offer from US clothing giant VF Corporation and Altamont Capital Partners, and another from Paul Naude, the long-time boss of Billabong’s American operations, in conjunction with private equity firm Sycamore Partners.

Both bids were initially pitched at $526.8 million, or $1.10 a share.

Two weeks ago Billabong revealed that both bids were still in train after rumours suggested that one had pulled out following a disastrous half-year result from the company.

Billabong’s shares last traded at 73c, weighed down by uncertainty surrounding the bids and the $536.6 million net loss for the December half year.

It is almost certain that any new offer presented by either predator will be much lower than the original target of $1.10.

Analysts from Credit Suisse have suggested Billabong’s shares could fall as low as 59c should a takeover offer fail to materialise.


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter