Looks like TPG, the fund that many felt was Billabong’s only hope, has withdrawn its offer, according to story in the Sydney Morning Herald.
The proposal has been withdrawn and talks have ceased, Billabong said in a statement this morning.. . The withdrawal of the bid is likely to put further pressure on Billabong’s shares as the firm struggles with a weakening retail outlook in. . . Shares in the company, which traded at nearly $12 in 2010 and fell as much as a quarter last week after TPG first raised concerned, opened 1 cent, or 1 per cent, higher at $1.005 this morning.
So this means, after taking a really close look at the company TPG decided that they weren’t interested in pursuing what many felt was a low ball offer. Guess it’s time for Launa Inman to get to work with new board chairman Dr. Ian Pollard and turn the slogging Billabong ship around and point it toward the channel before it gets washed up on the rocks.
Follow the jump for the official Billabong press release.
ANNOUCEMENT OF WITHDRAWAL OF TPG
GOLD COAST, 12 October, 2012: 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Billabong today announces that the unsolicited proposal from TPG has been withdrawn by TPG and discussions have ceased.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 organizational 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 realized 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 e- commerce platform and the globalization 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 recognized and globally distributed.
another $0.17 decline for bongworld. they will be fine. many great brands under the umbrella its time to throw over the barrels and get rid of the dead weight to re-align the ship. nixon will be up for sale. rvca will be up for sale. make your offers.
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