TPG still keen on Billabong despite asset sale
Surfersvillage Global Surf News, 20 February, 2012 : - - Private equity firm TPG Capital TPG.UL renewed an $825 million takeover offer for Billabong International (BBG.AX) on Monday, saying Billabong's planned sale of one of its most profitable brands would not be an obstacle. The news sent Billabong's share price up by 10 percent, surging for a second day.
TPG approached Billabong early last week with a A$3-per-share offer worth A$765 million ($825 million), but attached conditions including no asset sales for the struggling retailer and manufacturer. Billabong rebuffed the offer, announcing it would instead sell a half-share in its Nixon watch brand, one of its strongest brands, to raise $285 million to pay down debt.
The deal valued the Nixon brand at $464 million. That compared with Billabong's market capitalisation before the takeover approach of $493 million. Billabong has more than 670 stores globally, but plans to shut up to 150 underperforming outlets.
'The latest proposal is subject to due diligence, subject to finance and conditional on a number of other matters, but it does not preclude the Nixon transaction announced on Friday 17 February 2012,. Billabong said. Billabong said it would consider TPG's proposal and advised shareholders to take no action.
Rags, Billabong, TPG Captial