Billabong receives $555m buyout offer - UPDATE

According to a regulatory filing, the consortium also includes Bank of America Merrill Lynch as lead debt financier. The offer is A$1.10 per share in cash, as previously reported by The Australian Financial Review.

Last month Naude temporarily relinquished his roles as a director and president of the Americas in order to hold discussions with potential financiers regarding a buyout.

The offer is substantially lower than the A$694 million TPG Capital and Bain Capital were willing to pay in September. Both subsequently withdrew after conducting preliminary due diligence.

TPG originally submitted a bid of A$841 million in February only to be rebuffed. Billabong's stock then went into a downward spiral after a poorly received rights issue and deteriorating commercial performance. The company posted a net loss of A$275.6 million for the 2012 fiscal year, compared to a profit of A$119.1 million 12 months earlier. It projects an EBITDA of A$100-110 million for the 2013 fiscal year.

TPG's due diligence issues were reportedly tied to doubts about medium-term earnings forecasts and the health of the core Billabong brand.

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• Topics
• Consumer
• Australasia
• Buyouts
• buyout
• Consumer
• Australia
• TPG Capital
• Bain Capital Asia
• Sycamore Partners