Billabong shares in trading halt amid bid report
Surfersvillage Global Surf News, 16 February, 2012 : - - Billabong shares have gone into a trading halt following reports the brand has received A$766 million ($821 million) takeover offer from a private equity group that is believed to be TPG Capital. The trading halt apparantly was requested pending an announcement on the strategic capital structure review it flagged the week before Christmas when the company slashed its earnings outlook.
It is understood TPG is just one of many parties that have approached the company since it announced its capital structure review last December. Billabong shares are trading at 20 per cent of last years levels. According to a Fairfax Media report, TPG has offered $3 a share or $766 million.
The offer of $3 a share comes as the company is due to announce its interim results tomorrow and the outcome of a strategic review. Billabong has yet to publicly confirm the approach. Read more
TPG Capital (formerly Texas Pacific Group) is one of the largest private equity investment firms globally, focused on leveraged buyout, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations. TPG also manages investment funds specializing in growth capital, venture capital, public equity, and debt investments. The firm invests in a broad range of industries including consumer/retail, media and telecommunications, industrials, technology, travel/leisure and health care.
Source: Reuters / The Age