Australia's largest surfwear company, Billabong International Ltd has agreed to an extension of discussions with a consortium for the takeover worth Aus$287 million or US$295 million. The extension would be for another ten days and the consortium is led by a former director of the company in partnership with Sycamore Partners Management.
The parties would discuss terms as to the Aus$0.60 per share offer after Sycamore sought for an extension of time to complete its report on the earnings of the company. This reason was given to regulatory authorities by the Gold Coast based surfwear company.
Despite such extension, there is no guarantee the transaction would proceed and eventually be finalized.
In a statement, Billabong said, "It is anticipated that the extension will be adequate for the completion of the report and its consideration."
The spending doldrums and increased competition from other companies has caused issues with Billabong, as it has laid off workers, sold inventory below cost and written down brands but still reported a loss in the last half of December 2012.
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