AUSTRALIA: Billabong shares plunge after rights issue
Shares in Billabong nearly halved in trading today (25 June) as the market reacted to another profit warning on Friday and news that the surfwear retailer intends to raise AU$225m (US$228m) by selling new shares at a discounted price.
Shares fell 47% to close at AUD0.96 on the Australian Securities Exchange.
Last week, the firm said the proceeds of the share offer will be used to pay off debt and reduce overall leverage. It also cut its full-year earnings forecast to a range of $130-135m, down from earlier guidance of $157m.
In February, Billabong rejected an offer from private equity firm TPG Capital which valued the company at around AUD841.8m, or $3.30 after major shareholder and founder Gordon Merchant said he would not support a bid that valued the company at less than AUD4.00 a share.
Australian surfwear brand Billabong today (19 December) confirmed details of a AUD524m buyout bid - but shares fell 13.3% after the company issued another profit warning....
- Impact of the TPP on the US textile industry?
- JC Penney emphasises new merchandising strategy
- Crystal Group nurtures its caring culture
- Hazardous chemical removal a key industry issue
- US apparel import data shows China competitiveness
- Vietnam proposes 15% rise to regional minimum wage
- Cambodia garment workers “dying on the job”
- Avery Dennison forms JV with Ningbo Shenzhou
- Nike appointments to drive growth opportunities
- Critical findings identified at Bangladesh complex
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Textile Wholesaling in the UK - Industry Market Research Report
- Global market review of denim and jeanswear – forecasts to 2020
- Survey of the European Fabric Fairs: Spring/Summer 2015
- Prospects for the Textile and Clothing Industry in Turkey