Home / Knowledge / News / Apparel/Garments / TPG withdraws Billabong acquisition proposal
TPG withdraws Billabong acquisition proposal
12
Oct '12
On Tuesday, 24 July 2012, the Board of Billabong announced that it had received an indicative, non-binding and conditional proposal from TPG to acquire all of the shares in the company for $1.45 cash per share by way of a scheme of arrangement. Billabong further advised on Friday, 27 July 2012 that TPG would be granted the opportunity to conduct non-exclusive due diligence.

Billabong announces that the unsolicited proposal from TPG has been withdrawn by TPG and discussions have ceased.

As a result, the formal process to evaluate change of control proposals that was announced on Thursday, 6 September 2012 has concluded. Billabong continues to implement its Transformation Strategy detailed on Monday, 27 August 2012. This strategy, under CEO Launa Inman, provides a clear pathway to unlocking the inherent value within the company.

“The Board is pleased with the progress around implementation of the Transformation Strategy and structural organisational change being driven by CEO Launa Inman,” Billabong Chairman Ted Kunkel said “Acting in the best interests of shareholders has meant that we have remained focused on implementing the Transformation Strategy throughout the formal process.”

The company today reiterates the financial outlook as set out in the full year results presentation announced on Monday, 27 August 2012. The company expects the current challenging retail trading conditions to continue during FY13.

Assuming no further deterioration in these conditions, FY13 EBITDA is expected to be in the range of $100-$110m in constant currency terms.

This compares to pro-forma FY12 EBITDA of $84m, excluding 100% of Nixon and significant and exceptional items.

The result is expected to be driven by:

  • The benefits from the previously announced Strategic Capital Structure Review
  • The additional benefits to be realised under the Transformation Strategy
  • Recognition of Billabong’s share of after tax Nixon JV profits

Based on first quarter performance, Billabong is on track to achieve this guidance.

Billabong is targeting EBITDA in FY16 of >2.5x FY12 pro-forma EBITDA of $84m through a range of initiatives, including simplifying the business, investing in key brands, building the global ecommerce platform and the globalisation and integration of the supply chain.

The Board believes Billabong has an attractive independent future as a leading global boardsports wholesaler and retailer. Billabong has established and grown a portfolio of unique brands, including Billabong, RVCA, Element and DaKine among many others, which are internationally recognised and globally distributed.

Billabong


Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search