Billabong have had a horrendous few years which has seen their market value falling to a fraction of what it once was. With the wall falling into a recession, the company has seen sales plunge and customers desert their stores.
The company has advised that they will be doing a cash for equity exchange with Altamont Capital Partners. The swap will involve Billabong receiving a total of $325 million dollars in cash in exchange for 15% of the company. Altamont Capital Partners will also receive options in the company which will allow the company to own up to 40.5 percent of Billabong.
The deal will be put forward to Billabong shareholders for approval. The main issue faced by shareholders when making this decision is that the equity partner may seek to put the company into receivership.
The company has many valuable assets and brands including it’s online store called SurfStitch. SurfStitch is the company’s primary online store and has been a solid performer in Australia. They offer a SurfStitch promo code with their purchases which has attracted customers to their store.