Billabong rebuffs TPG Capital bid, sells stake in Nixon for $464 million

Australia's struggling surfwear giant Billabong International, rebuffed a $A776-million takeover bid from US private equity giant TPG Capital and announced a major restructuring that included job cuts and the partial sale of its watches and accessories company, Nixon Inc.

Billabong shares were last week placed in a trading halt amid reports it received a takeover bid from TPG Capital and the release of its strategic capital structure review.

The debt-laden company said the takeover offer from TPG Capital was certain not to go ahead as it had conditions like due diligence, finance and not selling its ownership in any of its brands.

''In the absence of certainty, Billabong has proceeded with the partial sale of Nixon in order to stabilise its balance sheet,'' the Gold Coast-based company said in a statement.

Texas-based TPG Capital, which has $48 billion of capital under management, had made a preliminary offer on 12 February, which according to several media reports, the PE firm had offered Billabong $3 per share, a premium of 68 per cent above its 16 February closing price of A$1.79. (See: TPG Capital tables $820-mn bid for Australian surfwear giant Billabong) 

Billabong has debt of more than A$500 million, of which, A$484 million is due in 2013 and the remainder matures in 2014.