AUS: Billabong shareholders vote in favour of share issue
Billabong said the share issue gives the company “breathing space”
Billabong shareholders have voted overwhelmingly in favour of a US$135m share issue that will transfer more than 40% of the business to two US private equity groups.
At an extraordinary general meeting yesterday (30 January), shareholders approved the issue of 329m shares, at AUD$0.41 per share, to Oaktree Capital and Centerbridge Partners. The resolution follows an 18-month auction for the company.
Billabong chairman Ian Pollard told shareholders at the meeting that the share issue and a subsequent rights issue give the company "breathing space" and allow it to materially lower its gearing, reduce its financial risk and improve its profitability and free cash flow.
This, he said, will allow the board and management to focus on stabilising and then re-building the business rather than "dealing continuously with ownership and financing issues".
He added: "We still face a number of hurdles in our reported profitability and expect this year's results to include more significant costs associated with reinvesting in and restructuring the business.
"But support of today's resolutions is critical in providing our new executive leadership team with the financial flexibility to turn around our business operations."
Earlier this week, the Australian Shareholders Association expressed its concern that "control of an iconic Australian company is changing hands cheaply without shareholders being given up-to-date financial information".
However, an independent expert's report from Grant Samuel said it was in the best interests of shareholders to approve the share issue as the company had no alternative source of funds and the balance sheet restructure would allow management to focus on improving performance.
Supply chain and operations specialist Jeff Streader has been named global chief operating officer (COO) of action sports and surfwear brand Billabong....
Billabong International Ltd. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and ......
Billabong International Limited (BBG) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been c...
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...
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 ...
Introduction Womenswear in Australia industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The pr......
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...
Australian consumers are continuing to purchase sports clothing and footwear items avidly, despite the general retail slowdown and the widespread practice of reconsidering spending on discretionary it...
- China tightens on corporate social responsibility
- Marks & Spencer to extend mobile phone monitoring
- Factoring: a lifeline for apparel suppliers?
- Outdoor industry's future must be more inclusive
- Responsible apparel sourcing requires teamwork
- H&M calls for annual wage reviews in Bangladesh
- New JC Penney CEO “credible but no solution”
- UPDATE: A&F appoints Horowitz to head Hollister
- Cambodia garment workers campaign for higher wages
- Child labour products still entering US from China
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Wool in the 21st Century: new prospects for a familiar fibre
- Ethiopia – the emerging textile and clothing industry
- Prospects for the Textile and Clothing Industry in Vietnam
- Global market review of denim and jeanswear – forecasts to 2020