Australian surfwear company Billabong receives $556-mn takeover bid
19 Dec 2012
Billabong International yesterday received a $556-million takeover bid from Paul Naude, head of the Struggling Australian surfwear company's flagship Americas division, after two private equity firms had earlier backed away from a deal.
A consortium led by Naude and New York-based private equity firm Sycamore Partners offered to pay A$1.10 per share, a 12-per cent premium to the stock's last trade before being placed in a trading halt on Monday.
Bank of America Merrill Lynch will be the lead debt financier to the consortium.
The offer price is also a 48-per cent premium to the day before Naude announced he was considering a management buyout.
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)
Shares of the Perth-based company plunged 11 per cent to A$0.87 as the company cut its earnings guidance by about 15 per cent.
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