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Billabong foresees waves of change as it announces new takeover Thursday, 16th February 2012
The Australian surf wear retailer Billabong International has received a AUD 766 million takeover from an undisclosed equity group. Australian Finance Review reported on Thursday that it is believed to be TPG Capital, although the source for the tipoff was not disclosed.
On Tuesday, Chairman Ted Kunkel received an offer for at least AUD 3 per share, the newspaper said. International and local banks have given commitments to finance the offer.
A spokesperson at Billabong said on Thursday that he was unable to comment on any changes. TPG Capital have also refused to discuss the matter, while Perennial which holds a 10 per cent stake in Billabong, explained to Reuters that it had no response so far.
The retailer has placed its shares on a trading halt, saying it had planned to announce a strategic capital structure review. This was first announced in December after a lacklustre performance in Europe and Australia.
An array of private equity firms have been looking at a possible takeover of Billabong, which makes around two-thirds of its profit off shore, since the company appointed Goldman Sachs to review its capital structure, the newspaper article said.
Analysts at UBS said: "To secure the balance sheet we believe AUD 250 million of capital is required through a combination of dividend reduction, asset divestment, rights issue, and engagement of a strategic investor."
Shares in Billabong have fallen significantly from over AUD 9 in February last year, to the last trading share at AUD 1.79. They will be reporting the first-half earnings on Friday.
Peacocks may close 200 stores Thursday, 8th December 2011
Discount retail group Peacocks is considering the closure of up to 200 shops to safeguard the company’s future.
The closures would strike around one in five of Peacock’s stores, and are being discussed as part of a broad restructuring plan aimed at safeguarding the company’s future, according to Sky’s Mark Kleinman.
An agreement is currently in the works between the company’s lenders and its shareholders to restructure the company’s debts and its operations. Goldman Sachs is said to be involved in discussions which continued today, with hopes of reaching an outline deal before Christmas.
The talks are yet to result in any firm decisions, and so the store closure numbers could yet reduce from the 200 under consideration.
“We continue to progress our re-restructuring discussions and plans, with no decisions taken at this point.”
Is this it for Ocado? Friday, 12th August 2011
According to research from the company’s own broker, Goldman Sachs, the internet grocer will see earnings peak next year and decline in 2013.
Goldman Sachs analyst Karen Hooi downgraded her earnings-per-share forecast for this year and the next by 40 per cent, and by 50 per cent or above for 2013.
Although the figures will not be welcome news for Ocado just weeks before the company updates the City on trading, Hooi said her numbers had been adjusted to reflect “continued capacity concerns.”
Ocado was founded by three former Goldman Sachs bankers, and the US investment bank was one of the brokers that floated it last summer. However, concerns have been mounting over the etailer’s relationship with Waitrose, which this year introduced a new home delivery service for its groceries within the M25, Ocado’s most lucrative region.
Jack Wills considers sale or float for 2012 Monday, 18th July 2011
Fashion retailer Jack Wills is preparing for a stake sale or float next year which could value the retailer at up to £500m.
Reports suggest that the retailer is in talks to appoint Goldman Sachs to advise it on its options. The general understanding of the situation within journalistic circles is that a sale of a stake is more likely than a float, at least for the moment.
Founders Peter Williams and Robert Shaw own around 70 percent of the business between them with private equity firm Inflexion holding the remaining shares.
Any deal is likely to be done in 2012.
Iceland boss in talks with Goldman Sachs for deal finance Monday, 27th June 2011Malcolm Walker is in cahoots with Goldman Sachs as he attempts to garner support for his efforts to regain control of the supermarket chain he founded over forty years ago.
A loan from the banking giant is one of many options being considered by Walker. Other ideas are the purchase of part of majority shareholder Landsbanki's stake and private equity support has not been entirely ruled out, but stands as more of a last resort for Iceland at this time.
Rival supermarkets Asda and Morrisons are said to be keeping a keen eye on the developments, sparking speculation that Iceland could attract a price-tag of as much as £2bn.
Property developer Ronson eyes £150m Murco Deal Tuesday, 12th April 2011
Gerald Ronson is among a handful of investors keen to take control of Murco UK in an attempt to become a powerhouse of petrol retailing.
Investment group Grovepoint Capital and Investec have also emerged as front runners in the auction of 475 Murco branded sites across the UK. A preferred buyer is likely to be named shortly in a deal said to be worth £150 million.
Ronson’s Snax 24 group, one of the leading fuel and convenience retailers is also involved in exclusive talks to secure Total’s UK petrol network from the French oil company.
If Ronson is able to secure both deals his business is likely to become fifteen times as big as his current Snax 24 portfolio of 84 sites. The deal would also come as a blow to rival Tesco, who have investments in Greenergy, another bidder for the Murco business.
Goldman Sachs is overseeing the auction of Murco’s UK operations.
All Saint’s CEO: “chain’s best days are ahead of it” Monday, 28th March 2011
The retailer was able to gain support from Lebanese M1 Group and an ex-Goldman Sachs executive to secure future on the high street.
Any speculation of a deal with Och Ziff and Goode Partners has been put to rest thanks to talk that All Saints are close to confirming a deal with M1 Group and Richard Sharp, an ex-Goldman Sachs banker.
According to reports the consortium will gain joint control over the company in return for a capital injection of £100 million.
Family run M1 Group was founded in the 1960s and now runs a global operation that specialises in fashion and property. Richard Sharp will be working alongside the group, a former head of Goldman Sach’s European private equity arm who was singled out by George Osborne in 2010 to join a panel of four experts to aid talks in reducing the public deficit.
It is expected the deal will be announced early this week. It will be a welcome relief to the retailer who will be using the funds to recapitalise the business and pay for international expansion.
Whilst discussing the rumours of a cash injection last week chief executive Stephen Craig stated that “the chain’s best days are ahead of it.”
All Saints more than doubled pre-tax profits in the year up to 31 January 2010, with earnings before interest, taxation, depreciation and amortisation rose by 90 per cent to £23.6m over the period.
Goldman Sachs appoints new M&A Heads Wednesday, 9th March 2011
Michael Carr and Dusty Philip named as new heads of American mergers and acquisitions for Goldman Sachs.
The global investment banking firm announced the staffing change last night in a drive to prioritise American business and expand market share.
A memo sent from Goldman Sachs this morning detailed the movement;
"Michael and Dusty will focus on driving our M&A business in the Americas. Their priorities will be to ensure that we optimally meet our clients’ M&A objectives, expand our market share by deepening client relationships, enhance our leading execution standards and strengthen the integration of M&A with our financing products. Michael and Dusty will retain their coverage responsibilities for their respective natural resources, healthcare and industrial clients."
Spring is usually seen as the season for hiring and firing within Wall Street following the annual bonus hand-outs in January and February.