Billabong and Sycamore in Exclusive Takeover Talks

By

Australian surfwear firm Billabong announced that it has entered into a 10-day exclusive takeover talks with its former head Paul Naude and private equity firm Sycamore Partners.

The Sycamore consortium has valued the ailing Australian firm's share at 60 cents per share.

The company earlier received offers from several firms, including private equity firm TPG which withdrew its offer of $1.45 per share. Naude and Sycamore also made an initial offer of AUD1.10 per share, subject to due diligence.

However, Billabong's shares dived since the takeover bid of clothing giant VF Corp. The shares fetched 73 cents before trading was halted last Tuesday to await the results of the talks.

In February Billabong reported a half-year net loss of $536.5 million, including $427.8 million in impairments to its brands and a $106.6 million writedown of its investment in youth label Nixon.

However, it posted global sales revenue of $699.6 million, which was 8.1 percent lower than the previous corresponding period. The company also expects a decrease in its full earnings estimated at $74-$85 million.

The 10-day exclusivity period would allow Sycamore to engage an "internationally recognised accounting firm to complete a confirmatory quality of earnings analysis, typical of an acquisition debt financing", according to Billabong, adding that there is no guarantee that the transaction will proceed.

Tags
Billabong International

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics