Billabong International Limited (BBG) announced the completion of the institutional component of its accelerated pro-rata non renounceable entitlement offer (“Entitlement Offer” or “Offer”) which opened on Thursday, 21 June 2012.
Under the Entitlement Offer, eligible shareholders were invited to participate pro-rata to their existing holdings by subscribing for 6 new Billabong ordinary shares (“New Shares”) for every 7 existing Billabong ordinary shares, at a price of $1.02 (“Offer Price”) per New Share, to raise approximately $225 million.
The institutional component of the Entitlement Offer (“Institutional Entitlement Offer”) will raise approximately $155 million and was well supported by eligible institutional shareholders who took up more than 79% of New Shares available to them. The shortfall bookbuild was oversubscribed, with the majority of New Shares allocated to existing shareholders and thebalance to new investors.
New Shares issued pursuant to the Institutional Entitlement Offer will rank pari passu with existing shares of Billabong. Settlement of the Institutional Entitlement Offer is scheduled for Thursday, 28 June 2012 and the New Shares offered under the Institutional Entitlement Offer are expected to be issued on Friday, 29 June 2012. Trading in New Shares on the Australian Securities Exchange (“ASX”) is expected to commence on that same day.
Billabong’s CEO, Launa Inman, said: “It is pleasing to see such strong institutional support for the Offer. Billabong has had its challenges in recent times but milestones such as today ensure we have the opportunity to reinvigorate the business and, over time, create further value for our shareholders through our transformation agenda.”
The retail component of the Entitlement Offer (“Retail Entitlement Offer”) will take place from Friday, 29 June 2012 to Tuesday, 17 July 2012. Retail shareholders will be entitled to subscribe for shares on the same terms as institutional shareholders did in the Institutional Entitlement Offer. The Retail Entitlement Offer has been fully underwritten. Further details about the Retail Entitlement Offer will be set out in the Retail Entitlement Offer Booklet, which Billabong expects to lodge with the ASX on Friday, 29 June 2012. Eligible retail shareholders wishing to participate in the Retail Entitlement Offer should carefully read the Retail Entitlement Offer Booklet and the accompanying personalised entitlement and acceptance form that will be sent to them.