Billabong International Ltd, the Australian surfwear company is now entering a ten (10) days of exclusive discussions with a consortium for a takeover bid. The consortium is headed by the company's former US boss who cut its original bid by 45% to just US$300 million.
Sycamore Partners is working with ex Billabong head Paul Naude on the takeover bid, now priced at Aus$0.60 per share, which confirms the scaling back of the bid offer.
Billabong has been in rough seas ever since it had rejected a Aus$850 million or US$883 million bid from TPG Capital last February 2012. It is also mired in high interest debt from an ill advised expansion bid and as the brand fell from the popular market, forcing it to sell off assets, close some of its stores and replaced its CEO. Now, it is undertaking a new strategy as takeover bids came for its review.
Another bid had come from VF Corp, the clothing group and Altamont Capital Partners, pricing each share at Aus$1.10. This bid is the same value as the original bid of Naude and Sycamore Partners.
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