http://www.businessspectator.com.au/news/2014/1/...llabong-vote-delay
The Australian Shareholders Association (ASA) has urged Billabong International Ltd to delay a shareholder vote on a decision to give as much as 40.8 per cent of the company to US private equity firms Oaktree Capital Management and Centerbridge Partners, The Australian reports.
According to the newspaper, the shareholder group was concerned that "control of an iconic Australian company is changing hands cheaply without shareholders being given up-to-date financial information" and that shareholders needed more information about Billabong's strategic plan and financial results.
The ASA's policy and engagement co-ordinator, Stephen Mayne, said it was "unprecedented for a former ASX 100 company outside the mining sector to fall into foreign hands through a heavily discounted selective placement – shareholders usually receive a premium when surrendering control", The Australian reports.
"Before seemingly selling the company on the cheap, investors deserve to be told the December-half results which the insiders proposing this deal are presumably well across," Mr Mayne said, according to the newspaper.
At an extraordinary general meeting on January 30 Billabong shareholders will be asked to approve the issue of 329 million shares and 29.6 million options to the Oaktree-Centerbridge consortium as partial repayment of a $US360 million bailout package. |
