Reuters – Revised Billabong Offers Come In

Revised takeover offers for Australia’s Billabong International Ltd have come in considerably lower than indicative bids, with the highest valuing the struggling surwear firm at only A$287 million ($300 million), the Australian Financial Review reported on Friday. A consortium comprising Billabong’s former U.S. boss Paul Naude and private equity firm Sycamore Partners has put forward an offer of about A$0.60 cents per share, while a rival group made up of private equity firm Altamont Capital Partners and U.S. clothing group VF Corp has offered less than A$.50 cents per share, it said.

(Reuters) – Revised takeover offers for Australia’s Billabong International Ltd have come in considerably lower than indicative bids, with the highest valuing the struggling surwear firm at only A$287 million ($300 million), the Australian Financial Review reported on Friday.

A consortium comprising Billabong’s former U.S. boss Paul Naude and private equity firm Sycamore Partners has put forward an offer of about A$0.60 cents per share, while a rival group made up of private equity firm Altamont Capital Partners and U.S. clothing group VF Corp has offered less than A$.50 cents per share, it said.

The offers are below Billabong’s share price at its last close on March 28 of A$0.73 and around half the A$1.10 initial indicative bids from both consortiums, which valued the company at A$527 million ($550 million).

Since the initial offers, Billabong has posted a first-half net loss of A$536.6 million and lowered its full-year guidance, citing difficult trading conditions in Europe and a disappointing performance from its Nixon watch brand.

Billabong shares are currently in a trading halt until an announcement on the takeover bids. The stock, which has lost around two-thirds of its value in the past year, sank to an all-time low of A$0.63 last month.

In February 2012, Billabong, the sponsor of current world surfing champion Joel Parkinson, rejected an A$850 million offer from TPG Capital as too low.

Subsequent offers of A$1.45 from TPG and Bain Capital were withdrawn after due diligence.

The company has sold off key assets, replaced its chief executive as a result of profit downgrades and raised A$225 million in a deeply discounted rights issue to cut its debt, which currently totals about A$286 million.