AUSTRALIA: Billabong ends takeover talks with TPG Capital
By Petah Marian | 28 February 2012
Australian surfwear brand Billabong today (28 February) said it has rejected another bid from TPG Capital and has ended discussions with the private-equity firm.
The firm rejected a third and improved offer of AUD841.8m (US$903.7m), or AUD3.30 per share, and said that discussions between the two parties have ceased.
"However the board is prepared to engage with TPG or any other party that makes a proposal which is in the best interest of the company and its shareholder," Billabong added.
The company has been in talks with TPG Capital after it made an AUD3 per share bid for the company earlier this month, valuing it at AUD765.3m.
The initial offer precluded Billabong selling any of its assets - but Billabong then sold a majority stake in its Nixon brand, effectively rejecting the initial offer. TPG Capital responded with another AUD3 per share bid, which was rejected yesterday.
Major shareholder and non-executive director Gordon Merchant and non-executive director Colette Paull said they did not support Billabong "taking any steps to assist or facilitate a proposal by TPG Capital, including due diligence on Billabong, even if the price TPG Capital offered was AUD4.00 per share", which they consider would "still represent a discount on the true value of Billabong shares".
Billabong earlier this month said it would close between 100-150 under-performing shops as it booked a slump in first-half net profit. The company also announced the sale of a majority stake in Nixon in a deal that valued the accessories brand at US$464m.
Sectors: Apparel, Finance, Retail
Companies: Billabong
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