Billabong takeover moves to the next stage
24 Dec 2012
Troubled surfwear retailer Billabong has taken its latest takeover offer to the next step, a move that would allow former board member Paul Naude and his financial backers examine its books.
As part of a consortium including New-York based private equity group Sycamore Partners and Bank of America Merrill Lynch, the former Billibong director and president of its American business has offered $527 million for the retailer.
Billabong today said its board had reviewed the proposal by Naude and decided to let a due diligence on the company be conducted by the consortium. The due diligence process is expected to be completed in six weeks.
The company has stressed however, that its approval of due diligence would in no way guarantee the success of Naude's offer.
"The board of Billabong reiterates that there is no guarantee that, following a period of due diligence by the consortium, an acceptable binding proposal will be forthcoming," Billabong said in a statement.
This comes as the fifth takeover offer made for Billabong in 2012, and the lowest.
