Billabong International Ltd, the largest surf wear company in Australia, is being bidded out for as low as Aus$0.50 per share. According to two individuals familiar with the transaction, private equity bidders are jockeying for position to purchase the company.
For its part, Billabong is seeking a better offer for the sale and is now in discussion with private equity consortiums such as Altamont Capital Partmers and Sycamore Partners Management. While these discussions have not reached a pricing share, it is hoped that it would be higher than current floated offers for the company.
In a move to continue with buyout transactions, Billabong has suspended the trading of its shares. There was no timetable for the effectivity of the suspension. The current offer of Aus$0.50 is less than half of the inital offer made at Aus$1.10 offer by DaKine and RVCA brands totalling Aus$239 million or US$250 million. This is lower than the price level that founder Gordon Merchant declared he'd reject if an offer from TPG Capital was tabled.
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