A section from the Financial Review Jan 2018 The big question...

First 7 Last

Share
Profile

Follow
Olivia05

172 Posts.

39

20/01/18

19:19

Post #: 30440098
Share

Originally posted by buffetman ↑

I agree - It stinks... low ball offer the first time and now again. Equity per share stands at around 88c so only a slight premium to those already written down equity figures.

The reality though is if I was looking at buying the company now, using only the information to hand (published) then the company has made losses in 5 out of the past six years.

Return on equity has never been higher than 13%.
Shareholders equity is steadily decreasing as have those returns on equity.
Debt is high.

I'm surprised Gordon Merchant is voting in favour. He stands to liquidate his position unless there's a sweetener somehow.
Now the exclusivity agreement has been signed there's little prospect of another bidder.
In the last round, a few parties took a look then declined to buy - that was when they had more brand equity too.

Pity the poor people who bought in at $47.

I wonder what the value of their franking account is?

Expand

A section from the Financial Review Jan 2018

The big question for the minority shareholders is how hard they are going to fight.
Will they have enough votes to scuttle Oaktree's bid? In addition to Merchant backing the bid, Billabong's other senior lender, Centrebridge, has agreed to vote its 19 per cent stake in favour of the scheme.
Still, there must be some chance Ryder and Adam Smith force Oaktree to increase its bid. Remember, Oaktree cannot vote its 19 per cent stake in the poll on the scheme of arrangement.
All of which suggests this wave hasn't crashed on the shore quite yet.

Read more: http://www.copyright link/business/retail/gordon-merchant-faces-another-battle-over-billabongs-value-20180107-h0ekqc#ixzz54i7iZLuA
Follow us: @FinancialReview on Twitter | financialreview on Facebook

BBG Price at posting: 98.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

NUZ

Neurizon inks $1.5M loan against R&D Tax Rebate

HotCopper Trends: Wall of quarterlies dominate; then there's Micro-X & Ionic

ASX Market Close: Index rebounds as investors buoyant | July 30, 2025

IXR

Ionic Rare Earths falls -7% as momentum slips on vague production update

HAR

Haranga jumps +7% on Lincoln acquisition

First 7 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

A section from the Financial Review Jan 2018 The big question...

Top Stories

Neurizon inks $1.5M loan against R&D Tax Rebate

HotCopper Trends: Wall of quarterlies dominate; then there's Micro-X & Ionic

ASX Market Close: Index rebounds as investors buoyant | July 30, 2025

Ionic Rare Earths falls -7% as momentum slips on vague production update

Haranga jumps +7% on Lincoln acquisition

Featured News