Shareholders urged to reconsider Billabong deal
Surfersvillage Global Surf News, 28 January, 2014 - The Australian Shareholders’ Association (ASA) is calling for a delay to the shareholder vote transferring more than 40% of Billabong to two US private equity groups.
The ASA said it was declining to recommend in favour of the deal out of concern that control of Billabong was changing hands too cheaply and without shareholders being given up-to-date financial information.
Billabong is holding an EGM on Thursday (30 January), at which the board is recommending that shareholders back a deal giving private equity firms Centerbridge and Oaktree more than 40% of the business in return for a AUD360m (US$317m) loan.
ASA policy and engagement coordinator Stephen Mayne contrasted the “heavily discounted” share placement with the typical premium received by shareholders when surrendering control of a company.