US-based private equity group TPG Capital is said to have tabled an A$766 million ($820 million) bid for Australia's struggling surfwear giant Billabong International, according to The Australian Financial Review.

Texas-based TPG Capital, which has $48 billion of capital under management, is said to have made the preliminary offer to debt-laden Billabong on 12 February.

TPG Capital is understood to have made a $3 per share preliminary and incomplete offer, which is one the several offers under scrutiny by Billabong since it announced a strategic review in December 2011.

Billabong, whose shares are being traded at A$1.79,  did not comment on the takeover speculation, but the company yesterday went into a trading halt, citing the release of its strategic capital structure review today.

TPG Capital, which is offering a premium of 68 per cent above yesterday's closing price of A$1.79, is being  backed by funding commitments from Australian and international lenders, the paper said.

Billabong, based in Australia's Gold Coast, has debt of more than A$500 million, of which, A$484 million is due in 2013 and the remainder matures in 2014.

Apart from the Billabong brand, the company that was founded in 1973 by Gordon and Rena Merchant, sells surfwear and accessories under the Palmers Surf, Honolua Surf, Swell.com, Von Zipper, Kustom (footwear), Nixon, Xcel Wetsuits and Tigerlily brands, and also Element skate clothing and hardware.

Billabong's products are licensed and distributed in more than 100 countries and are available in approximately 11,000 stores worldwide. Products are distributed through specialised boardsports retailers and through the Company's own branded retail outlets.

The majority of its A$1.79 billion  revenue is generated through wholly-owned operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil.