TPG, the monster sized private equity firm (not to be confused with TCP the company that bought nearly half of Nixon), has made another offer for Billabong according to a story in the Australian Financial Review. Only this time it’s much lower than it was in February according to the Business Spectator.
In February, TPG offered $3.30 a share for Billabong, valuing the company at $850 million. This week’s offer of $1.45 a share comes at a 32 per cent premium to Billabong’s last traded price of $1.10, but illustrates the company’s struggles since the February offer, which has seen it issue another profit downgrade and launch a heavily discounted capital raising.
We’re guessing Mr. Merchant (and the board) will be a little more receptive to the offer this time around (seeing how things have been going recently).
[Link: Business Spectator and Australian Financial Review]
