ANOTHER SHARK CIRCLES SURFWEAR GIANT BILLABONG

ANOTHER SHARK CIRCLES SURFWEAR GIANT BILLABONG

A SECOND private equity group has made an offer for Billabong (ASX: BBG), raising the prospect of a bidding war.

In a rare piece of recent good news for shareholders, the Gold Coast-listed company says the new offer is “around’’ the $1.45 per share proposed last month by equity group TPG.

The price is 9 cents above today’s trading price for Billabong shares, but analysts expect the entry of a new player could eventually result in an increased offer.

Both initial offers value the company at around $694 million, about $86 million more than its current market valuation.

Directors say neither offer reflects the true value of the company.
The new bidder is understood to be Bain Capital, according to media reports. The company claims to have $66 billion in investments including holdings in Warner Music Group, AMC Entertainment and Burger King.

Billabong has opened its books to TPG and the new bidder.

“The board of Billabong now considers that the interests of shareholders will be best served by a formal process to thoroughly evaluate whether a change of control offer, at a price and on terms that the board would recommend, can be secured,” says the company in a statement.

The board says there is no guarantee the company will accept either offer.

The company recently released a transformation strategy which CEO Launa Inman believes can unlock the inherent value in the company.

Billabong shares rose 7.5 per cent on the announcement to $1.365.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Origin slapped with $17m fine for failing to protect vulnerable customers

Origin slapped with $17m fine for failing to protect vulnerable customers

Australian energy giant Origin Energy (ASX: ORG) has today been ord...

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

A Japanese-inspired salad bar from Bondi with "No More Fast Fo...

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

The recent floods that ravaged parts of Southeast Queensland and No...

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Brisbane-based workforce management company PeopleIN (ASX: PPE) has...