Billabong shareholders receive third bid in a year
With the wipeout in the Billabong (BBG) share price, from a high of $14.00 in mid-2007, the Company has now received its third takeover bid in a year.
President of the America’s Division since 1998, Paul Naude, together with a consortium of financiers, have “dropped in” a $1.10 per share bid, valuing BBG at $527m. This is a slight premium to the deeply discounted 6/7 rights issue at $1.02 per share, which delivered $225m in mid-2012 for debt reduction purposes.
The Board’s response will be interesting. Recently appointed CEO, Launa Inman, has well developed plans in getting Billabong back into the competition.
We have been told there are pockets of operational excellence at Billabong, but these need to be scaled-up across the organisation. The severe under-spend on IT is also being addressed.
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
