Billabong Rejects TPG’s Second Buyout Offer
Australian surf brand Billabong rejected a second, higher buyout offer from TPG Capital upon the advice of the company’s non-executive directors and a major shareholder.
TPG initially offered Billabong $3 per share, then, at the request of the surf brand, agreed to increase the offer to $3.30.But Gordon Merchant, Billabong’s non-executive director and major shareholder, and Colette Paull, also a non-executive director, urged the surf giant to reject the deal.
In a letter sent to the board, Merchant and Paull said they “do not support Billabong taking any steps to assist or facilitate a proposal by TPG Capital, including allowing TPG Capital to commence due diligence on Billabong, even if the price TPG Capital offered was $4 per share … [which] … would still represent a discount on the true value of Billabong shares.”—Alison A. Nieder
