Paul Naude & group seek Billabong buyout

Industry Updates

Offer of A$1.10 per share coincides with profit warning

Surfersvillage Global Surf News, 19 December, 2012 : - - Billabong has alienated many investors in a tumultuous year that has seen it first reject a A$3.30 bid by TPG Capital TPG.UL in February as too low, and then have subsequent offers of A$1.45 from TPG and Bain Capital withdrawn after due diligence.

Billabong said on Wednesday a consortium led by board director Paul Naude and New York-based private equity firm Sycamore Partners had offered A$1.10 a share. But the announcement coincided with the firm's third profit warning this year and appeared to break a confidentiality agreement, sparking speculation the group may backpeddle on its bid

Billabong International Ltd. (BBG) fell the most in two months amid investor concerns Sycamore Partners LLC may lower a A$527 million ($554 million) takeover bid after the company cut its earnings forecast by as much as 49 percent.

The stock slumped 23 percent below the A$1.10 a share offered by Sycamore, which sources clothing for Victoria’s Secret owner Limited Brands Inc. (LTD), and Paul Naude, the head of Billabong’s Americas division. Details of the bid were disclosed by the Gold Coast, Australia-based company today alongside the lowering of its profit forecast.

Billabong States: Following today’s ASX announcement from the Company, Paul Naude has confirmed in writing that the indicative, non-binding, and conditional proposal from his consortium (including Sycamore Partners Management as “cornerstone equity investor” and Bank of America Merrill Lynch as “lead debt financier”) to acquire all of the shares in the Company for $1.10 cash per share remains unchanged apart from the removal of the conditionality on confidentiality.

The Billabong Board will be considering the proposal and its terms and will update the market as soon as possible. In the meantime Billabong shareholders do not need to take any action in relation to this matter.

Check the Billabong Proposal

www.billabong.com
 
Source: Billabong / Bloomberg / Reuters
 
Author: The Editors
 
Tags: Billabong, Paul Naude, Investments
 
Industry: Surfersvillage