Billabong International Ltd. (BBG), the Australian surfwear company that has been originally targeted by TPG International LLC and Bain Capital LLC this year, has received a takeover bid from director Paul Naude.
Backed by Sycamore Partners LLC, a U.S. based private equity firm, Naude has reportedly offered A$1.10 a share, valuing the Australian company at $527 million ($555 million), Bloomberg reported. The offer is considerably below the $1.40-a-share offer from TPG, which valued the company to almost $700 million – an offer that the private equity firm withdrew after going through Billabong’s books.
‘Billabong has become a target after selling new stock at a discount to repay debt, closing stores, firing workers and posting a record loss amid a consumer slump. TPG withdrew a A$694 million proposal in October, its second since January, and a company which Billabong didn’t identify walked away from a bid in September. The suitor was Bain Capital, people familiar with the matter said at the time,’ (Bloomberg).
The report revealed that Billabong shares climbed 4.8 percent to 98 Australian cents yesterday before being suspended, after the Australian Financial Review reported on Naude’s offer. The company cited “a possible change of control proposal” as reason for the suspension in a filing yesterday, without identifying the bidder.
ABC revealed Billabong shares will be halted until Wednesday or until the company makes an announcement about the potential takeover offer.