Billabong Has Renegotiated Its Altamont Takeover Deal To Avoid The Regulator Stepping In

Getty/Michael Buckner

Billabong and hedge fund Altamont Capital have been forced to renegotiate their $395 million rescue package to avoid having Australia’s takeover regulator step in.

The Takeover Panel has been investigating the deal since mid-July, when Billabong creditors Oaktree Capital and Centerbridge Partners said terms of the agreement were “anti-competitive and coercive”.

The regulator had intended to declare the deal unacceptable; Billabong and Altamont Capital have proposed a new deal in response.

The new deal has vastly reduced the fees that would have come into effect if there were to be a change of control in the company, or if shareholders voted against Altamont exercising its share options.

Altamont will control of up to 45.05% of the company under the new deal, including 1.72% of shares held by the CEO it instated, Scott Olivet.

The previous deal gave Altamont up to a 40.5% share of the company.

Billabong plans to finalise the new deal in 2-3 weeks.

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