AUSTRALIA: Billabong ends takeover talks with TPG Capital
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.
Featured reports from just-style's research store this week include the prospects for India's texile and clothing industry, a look at footwear in Malaysia and SWOT analyses on Billabong and Gap Inc....
Billabong has agreed to open its books to private equity firm TPG Capital, but said it does not believe the AU$694m bid reflects the "fundamental value" of the Australian surfwear brand. ...
Billabong has received a second offer from private equity firm TPG Capital at a much lower price than previously offered for the Australian surfwear brand. ...
Sporting goods giant Nike is rumoured to be a potential buyer of Australian surfwear brand Billabong....
- 2014: Year in review - Sourcing winners and losers
- COMMENT: The decline of the buying office
- 2014: Year in review - Brand winners and losers
- 2014: Year in review - Retail winners and losers
- Bangladesh: Raising the bar on apparel exports?
- Report urges overhaul of Cambodia factory safety
- Bangladesh knitting worker killed by faulty lift
- North Face debuts locally-grown "backyard" hoodie
- Bangladesh factory improvements “will take years”
- Apparel manufacturing leads US reshoring trend