COAST ICON BILLAGONE
GORDON Merchant couldn’t bear to watch as the company he stitched together was sold off by its shareholders yesterday – and it’s no wonder – his personal stake in Billabong has dived $1.12 billion in 10 years.
GORDON Merchant couldn’t bear to watch as the company he stitched together was sold off by its shareholders yesterday – and it’s no wonder – his personal stake in Billabong has dived more than $1 billion in the past 10 years.
In June 2009, when shares were trading as high at $29.73 each, financial reports show the company founder held 37.7 million of them – then valued a shade over $1.123 billion.
Eight months earlier in September 2008, Billabong shares were trading at $45.02 – although it’s unknown how many shares Mr Merchant owned at that time as his holdings have ebbed and flowed.
Even at the increased offer price of $1.05 per share for the sale of the company to Boardriders Inc, Mr Merchant will walk away with little more than $25 million when the sale closes out next month.
The 75-year-old surfer who famously founded the icon from his Burleigh kitchen in 1973, opted not to attend the meeting, instead escaping overseas and listening in by phone. Mr Merchant, who holds 12 per cent of Billabong shares, voted to sell the company he built from nothing.
He sold much of his stake in 2006, making almost $200 million, but then spent almost $95 million in following years buying them back.
Despite the wipe-out, the father of four does not walk away from his life’s work empty-handed – he lives in a vast mansion at the top of Tugun hill, with personal access roads and sweeping views of the Gold Coast and has investments in various other more profitable companies.
After the vote, Billabong chairman Ian Pollard said the founder’s “passion for Billabong was unmatched”.
“He has never sought or really welcomed the spotlight, including today,” Mr Pollard said.
“Gordon Merchant started Billabong here on the Gold Coast in 1973, literally on his kitchen table with his thenpartner Rena.
“Gordon has seen all the highs and lows of the last 45 years and basically, he is one of the very few Australian business figures who has actu- ally built a global brand from the ground up – so an enormous legacy.
“I believe that the global brand and its legacy will be in good hands following today’s vote and the ultimate merger.”
Mr Pollard said he’d spoken with Mr Merchant via email.
“I don’t think I can accurately speak about Gordon’s feelings,” Mr Pollard said. “He decided it was better if he wasn’t here today, even though he had done everything he could in supporting this transaction.”