TPG Capital returns with $712 mn offer for Australia’s Billabong

Private equity firm TPG Capital has renewed its interest Australia's Billabong International by offering to pay A$694 million ($712 million), four months after the debt-laden surfwear company rejected its revised higher offer.

TPG has offered to pay A$1.45 per share or $712 million, a 32-per cent premium to Billabong's closing price yesterday, while in February, it had offered A$3.30 a share or $904 million, under a revised proposal on 27 February .

Post TPG's 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.

TPG's initial offers did not preclude the planned sale of Nixon.

With about $48 billion of capital under management, TPG had made a preliminary offer on 12 February to buy Billabong for $3 per share or A$765 million ($820 million). (See: PG Capital tables $820-mn bid for Australian surfwear giant Billabong) 

Billabong, based in Australia's Gold Coast, which had debt of more than A$500 million, had rejected TPG's buyout proposals, saying that the offers did not reflect the value of the company and ceased discussions with the Texas-based PE firm.