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

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

TREASURY WINES UNCORKS SWEET $269M PROFIT DESPITE INVENTORY WOES

REVEALING the fruits of its past year of labour, Treasury Wine Estates (ASX: TWE) has posted a 55 per cent increas...

TATTS GROUP POSTS PROFIT AND REVENUE DROP ON FEWER JACKPOTS AND BAD WEATHER FOR RACING

TATTS Group (ASX: TTS) has posted a full year net profit loss of 5.7 percent and a revenue decline of 8.4 per cent as...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

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