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AUD3.30 per share bid by TPG Capital in February as too low subsequent bids of AUD1.45 from TPG and Bain Capital were withdrawn after due diligence.
Troubled Australian surfwear brand Billabong is attempting to move beyond recent turbulence and onto its turnaround plans, but uncertainty still remains....
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...
In an unexpected move, surf-led apparel business Billabong has secured a long-term funding package from a rival consortium of two private equity businesses and named the former boss of Eddie Bauer as ...
US clothing company Delta Apparel has said Rod McGeachy will become president of the group's sports and military brand Soffe. ...
Struggling Australian surfwear company is facing calls for a board shakeup from one of its largest shareholders, in a move that could cloud a deal to finalise the company's long-term funding arrangeme...
Australian surfwear brand Billabong has seen its losses worsen as it works to refinance its debt. ...
- Why China 5-year plan won't change garment-making
- ‘Fixing Fashion’ one stitch at a time
- Navigating a turbulent sourcing landscape
- Jordan garment sector strong amid regional unrest
- Supply chains under pressure as Black Friday looms
- US Q3 in brief: Burlington Stores, Guess, Chico's
- Global clothing and footwear trade to drop by 1.5%
- Cambodia living wage campaign kicks off
- New Balance launches first 3D printed running shoe
- German sustainable textile scheme heads to Vietnam
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Trade and Trade Policy: The World’s Leading Clothing Exporters and Key Markets 2015