Billabong considers $527m takeover
Surfwear retailer Billabong is considering a $527 million takeover offer from one of its former executives, and has downgraded its full-year earnings guidance.
Former board member Paul Naude has offered $1.10 for each Billabong share, as part of a consortium made up of New-York based Sycamore Partners and Bank of America Merrill Lynch.
It is the fifth takeover offer for the troubled retailer in 2012.
Billabong said it was considering the offer, which carries many conditions and is subject to completion of due diligence, despite progress being made in the company's transformation plans.
"The board supports the transformation strategy, which has already delivered some early improvements in operations and in managing costs," chairman Ian Pollard said in a statement on Wednesday.
"However, it will continue to assess the current indicative, non-binding and conditional proposal as well as other matters that may be outside of its control as it seeks to restore the fortunes of the company."
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