Home / Knowledge / News / Apparel/Garments / Billabong receives acquisition proposal from TPG
Billabong receives acquisition proposal from TPG
24
Jul '12

The Board of Billabong announces that, after market close, it received an indicative, non-binding and conditional proposal from TPG International LLC (TPG) to acquire all of the shares in the company for $1.45 cash per share by way of a scheme of arrangement.

TPG's indicative price of $1.45 per share is based solely on available public information and may be refined with the benefit of due diligence.

TPG's offer is based on 479 million shares on issue, representing total Billabong shares post the entitlement offer (previously 258 million), as well as reflecting Billabong's trading update and estimated net debt position announced on 21 June 2012 of approximately $100 million post receipt of the final entitlement offer proceeds ($325 million pre receipt of the final entitlement offer proceeds).

The proposal is subject to due diligence and conditional on a number of other matters which include:

  • Entry into a mutually agreed scheme implementation agreement, on customary terms and conditions including but not limited to the following:

- Unanimous board recommendation;

- Mutual facilitation arrangements;

- Notification and break-up fee arrangements;

- No material adverse change;

- Availability of financing;

- Receipt of requisite shareholder, regulatory approvals and third party consents; and

- No distributions after 23 July 2012.

  • Availability of sufficient debt financing on terms acceptable to TPG. 
  • Billabong retaining its existing ownership interest in all of its brands.
  • Billabong's net debt position (as at 30 June 2012) not being materially different from the A$100m guidance provided on 21 June 2012.

TPG has advised that Colonial First State Investment Limited (Colonial) and Perennial Value Management Limited (Perennial) have agreed under conditional share sale agreements, to sell to TPG, in aggregate, approximately 12.5% of Billabong's issued capital post the allocation of shares under the current retail entitlement offer (equates to approximately 14.5% of Billabong's current issued capital).

TPG has advised that it, Colonial and Perennial have agreed certain arrangements in relation to sharing upside arising from increases (above the initial price) in the price or value of a TPG scheme that completes or a competing proposal that completes. Billabong understands that these agreements will not preclude the Board of Billabong securing a transaction at a higher price. TPG intends to file a substantial shareholder notice shortly.

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search