Billabong did not explain why TPG dropped the offer, but had said in a stock exchange announcement last week that: ‘‘As part of its due diligence investigations, TPG and its advisers have expressed concerns in relation to some issues.’’
Shares in the surfwear company fell as much as 19 percent in Sydney trading on Friday on the news of the dropped bid.
a statement on Friday, Billabong said that TPG's A$1.45 cash per share
offer "has been withdrawn by TPG and discussions have ceased.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."
said it continues to implement its Transformation Strategy detailed on
August 27. This strategy, under CEO Launa Inman, provides a clear
pathway to unlocking the inherent value within the company, it added.
Board is pleased with the progress around implementation of the
Transformation Strategy and structural organisational 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
The company also reiterated the financial
outlook as set out in the full year results presentation announced on
August 27. 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 realised 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.
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 ecommerce platform and the
globalisation and integration of the supply chain.
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.
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