The volatile state of the international investment community and of the boardsports market in certain countries have apparently led the founders and owners of Rip Curl, Doug Warbrick and Brian Singer, to shelve plans to sell the company, according to The Australian. The newspaper quoted Warbrick as indicating that the company may again go for a sale “at some point in the next few years,” but the report could not be confirmed at the time of going to press.
The newspaper indicated that Rip Curl's shareholders had set an asking price of US$400 million, roughly equivalent to one year worth of sales. As previously reported, Rip Curl has been profitable, unlike Billabong International, generating better margins than Quiksilver. It is recovering from a big drop in the European market.
It will be interesting to see what will happen with the proposals formulated by VF Corporation and various institutional investors to take over and split the assets of Billabong. Their due diligence examination of Billabong's accounts is expected to be completed sometime this month.