TPG International Drops Billabong Offer
The surf industry’s big proxy fight is over for now.
Australian-headquartered Billabong International Ltd. announced on Oct. 12 thatprivate-investment firm TPGInternational LLC withdrewits bid to acquire all of Billabong’s shares for 1.45 Australian dollars pershare. No reason was given for the withdrawal.
The unsolicited bidfrom TPG was submitted on July 24. The investment firm had been conducting adue-diligence investigation into Billabong business. In September, theBillabong directors complained that TPG’s offer undervalued the sprawling surfcompany, which is listed on the AustralianSecurities Exchange andmaintains its Americas division in Irvine, Calif. Investors took TPG’s offerseriously. On Oct. 4, Billabong temporarily halted trading of shares because ofgrowing rumors that TPG would withdraw its offer.
In September, anunidentified firm, reportedly BainCapital, withdrew its offer to acquire Billabong’s shares, also for AU$1.45per share.
There are currentlyno bids for the surfwear company. A prepared statement from Ted Kunkel, thechairman of the Billabong board of directors, said the beleaguered company willmake a comeback by following the direction of its “transformational plan,”which was announced in August.
The plan called forincreased investment for Billabong properties RVCA, Dakine and Element,as well as the company’s core brand, Billabong.
In other Billabong news, Ian Pollard, anactuary and a fellow of the AustralianInstitute of Company Directors, was announced as chairman-elect ofBillabong’s board of directors.—Andrew Asch
