If you thought things were going to settle now that there looked like there was (another) approved deal for Billabong, you were wrong. The fun continues with Coastal Capital continuing to buy shares gaining 7.6% ownership of the company. Apparently the purchases are to get them into a position where they can get the board sacked for what they describe as “the largest destructions in the sharemarket value of a company in modern Australian corporate history“.
They want to see everyone gone except for company founder Gordan Merchant and his long time supporter Colette Paull, who combined have a 16% holding which Coastal argues will make them more aligned with shareholder interests… Definitely, but they’re also the ones to kill off an $850 million bid for the company only to accept a far worse deal a couple of years later. So while their interests might be aligned, perhaps their judgement might be something to keep an eye on.
Check more on this story over here.