BILLABONG SHARES SLUMP AMID DAMNING SPECULATION

BILLABONG SHARES SLUMP AMID DAMNING SPECULATION

BILLABONG (ASX: BBG) shares plummeted in value today amid reports potential suitor TPG Capital is considering withdrawing its offer to buy the embattled Gold Coast surf wear company.

The share price slumped 18.63 per cent to $1.075 today, nearly 40 cents per share below the proposed takeover price.

The latest slide, which continues two years of woe for BBG shareholders, came after the Australian Financial Review reported sources close to the company as saying TPG was close to walking away from the due diligence process.

The private equity firm, which made a $694 million for BBG at $1.45 per share, has until October 24 to examine the financial state of the company.

AFR quoted a source as saying “tools were put down 10 days ago’’ after TPG reviewers assessed BBG’s core business to be “in decline’’.

Billabong has reacted to the speculation in an announcement to the stock exchange.

"TPG has confirmed it has not withdrawn from the sale process. As part of its due diligence investigations, TPG and its advisers have expressed concerns in relation to some issues, however discussions in relation to those matters are continuing."

The company, which was also forced to respond to a "speeding ticket" from the ASX, maintained it was under no obligation to accept any takeover offer.

The news comes only two weeks after another private equity group, the Boston-based Bain Capital, took just a fortnight of preliminary due diligence to scrap plans of moving on Billabong.

Billabong earlier this year announced its first loss ($276.6 million) since it was listed in 2001. Chief executive officer Launa Inman unveiled a rescue plan for BBG in August and insists the company’s future will not be affected by takeover speculation.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Luxury fashion seller Azura hits profitability as AI plugs data gaps

Luxury fashion seller Azura hits profitability as AI plugs data gaps

An artificial intelligence (AI) overhaul has allowed Azura Fashion ...

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...