AUSTRALIA: Billabong halts trading as takeover talks continue
Australian surfwear brand Billabong has halted trading in its shares while negotiations continue with its two suitors.
The company said the halt, which is in place until Thursday, was necessary while it continues to discuss the two proposals.
"Discussions in relation to these proposals remain incomplete and the company expects to make an announcement when the discussions are complete," it said in a filing to the Australian Stock Exchange today (2 April).
The company has been in talks with two takeover suitors - VF Corp and private equity firm Altamont Capital Partners, as well as North American division boss Paul Naude and Sycamore Partners. Due diligence was expected to be completed by 28 March.
The two companies have made bids of AUD1.10 per share each, which value the company at AUD524m (US$548m).
This is the second trading halt the company has implemented, with the company stopping trading in its shares on 21 March after its share price plunged over concerns over the potential takeover offer.
In February, the company reported an AUD536.6m (US$554.3m) first-half loss, compared with a profit of AUD16.1m in the first-half of the prior year.
This year's results include AUD427.8m in non-cash impairment for goodwill and brands, and a write down of AUD$106.6m on the company's investment in Nixon. Excluding these items, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were up 9.9% to AUD57.2m, Billabong said.
Sales during the half-year fell 8.1% to AUD702m, driven by a drop of 17.3% in Europe and 5.3% in the Americas on a constant currency basis.
The brand has had a difficult 2012, after rejecting an AUD3.30 per share bid by TPG Capital in February as too low subsequent bids of AUD1.45 from TPG and Bain Capital were withdrawn after due diligence.
Billabong International Ltd anticipates that the current challenging trading conditions and difficult retail landscape in Australia will continue over the coming financial year. Despite reporting sale...
Troubled Australian surfwear brand Billabong is attempting to move beyond recent turbulence and onto its turnaround plans, but uncertainty still remains....
Apparel Retail in Australia industry profile provides top-line qualitative and quantitative summary information including: market size (value 2008-12, and forecast to 2017). The profile also contains ...
Cautious consumer spending continued to impact clothing accessories in Australia in 2012, with the category experiencing 1% retail value growth from a similar rate of volume growth. Volumes within the...
Billabong's general manager for Europe, Franco Fogliato, has been named the latest executive to leave the Australian surfwear company, and is headed to outdoor apparel and footwear firm Columbia Sport...
Fox Wizel Ltd’s main focus going forward is to expand the number of American Eagle Outfitters outlets. This is the company’s reaction to the introduction of multinational brands during the review peri...
- Improved supplier capabilities benefit Next
- THE FLANARANT: Understand win-win or lose out
- China and Vietnam lead US apparel imports in July
- Next H1: What the analysts say
- Abercrombie & Fitch to lose logos in fashion focus
- Brandix selects first "game-changing" innovations
- H&M goes green with Conscious Denim
- TPP talks "make progress" but issues remain
- Bagir to invest in Ethiopia as H1 loss deepens
- US cotton production set to decline
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details