Billabong International’s Americas head to table $555-mn takeover bid

Paul Naude, head of Billabong International's flagship Americas division, will table a A$527 million ($555 million) takeover bid for the struggling Australian surfwear company, after two private equity firms this year backed away from a deal, The Australian Financial Review today reported, citing two people with knowledge of the matter.

In mid-November, Naude had informed the board of Billabong that he intends to stand temporarily aside from his post, while he tables a leveraged buyout of the company. (See: Billabong's US head plans takeover)

Naude, backed by New York-based private equity firm Sycamore Partners and funding from Bank of America-Merrill Lynch, has offered to pay $1.10 per share, a 12 per cent premium to its latest closing price, and  a 48 per cent premium a day before Naude announced he was considering a management buyout.

Shares in Billabong were placed in a trading halt early today after the paper reported that Naude would today table a bid to the Billabong board.

''The company is in a trading halt and we will make an announcement at the appropriate time,'' Billabong said in a statement.

The offer from South African-born Naude, a former professional surfer, is highly conditional and depends on due diligence, although he would be in the know of the inside having been in the company for 14 years.