Australia's Billabong receives another A$694 mn offer from mystery suitor
06 Sep 2012
Australia's struggling surfwear giant Billabong International Ltd, today said that it has received a A$694 million ($707 million) buyout offer from an unnamed second suitor that has matched an existing bid from private equity firm TPG Capital.
The Queensland-based company did not identify the new bidder that has made an A$1.45-a-share conditional cash offer, but several media reports named Boston-based private equity firm Bain Capital as the mystery suitor.
In July, TPG Capital came back with a revised lower offer of $1.45-a-share or A$694 million, four months after the debt-laden surfwear company rejected its 27 February revised higher offer of A$3.30 a share or $904 million.
TPG Capital reduced its offer since post its first approach, Billabong sold 48.5 per cent of its watches and accessories company Nixon to Trilantic Capital Partners for $A432.71 million ($464 million), while it retained 48.5-per cent and its management 3 per cent.
Both offers are indicative and conditional, and may change after they conduct due diligence on Billabong.
"Billabong now considers that the interests of shareholders will be best served by a formal process to thoroughly evaluate whether a change of control offer, at a price and on terms that the Board would recommend, can be secured," Billabong said today in a statement.
