Billabong says director Paul Naude weighs LBO

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Billabong says director Paul Naude weighs LBO, shares jump

Surfersvillage Global Surf News, 19 November, 2012 : - - Billabong International Ltd which had potential buyers withdraw takeover offers last month, said on Monday one of its directors wanted to investigate a possible leveraged buyout of the firm. Billabong shares jumped as much as 17.6 percent on the news.

Private equity firms TPG and Bain Capital LLC withdrew from bids for the company last month, without giving reasons, after a troubled year that has seen Billabong slash profit forecasts, replace its CEO and sell half of one of its top brands, Nixon, to pay down debt.

Billabong has suffered weak sales of its namesake brand as well as its Von Zipper and Element lines, and posted its first full-year loss this year since listing. The company said board member Paul Naude would stand aside from his role as president of the Americas for six weeks while he looked at putting together a buyout proposal.

"Mr Naude has advised that he is seeking to hold discussions with potential financiers, both debt and equity, to gain their support for a potential change-of-control transaction of Billabong," the company said in a statement.

Billabong said there was no arrangement with any other executive about the proposal, and put conditions on Naude's proposal including providing no confidential information to potential financiers.

Read the ASX Announcement

Source: Billabong/Reuters

Author: The Editors

Tags:  Billabong, Paul Naude,

Industry: Surfersvillage