Billabong receives counter-offer
Billabong International, Australia’s largest surfwear brand, received an offer from VF Corp, the maker of Lee jeans, and Altamont Capital Partners matching a $527 million bid from one of its directors.
The offer, which values the Gold Coast, Australia-based company at $1.10 per share, was subject to due diligence.
The conditions applied are similar to those affecting the bid from Paul Naude, the director of Billabong’s Americas division, who is backed by Sycamore Partners Management with debt financing from Bank of America’s Merrill Lynch unit.
"Billabong will now run a process to evaluate whether a chaage of control proposal, at a price and on terms that the board would recommend, can be secured. This process is expected to take approximately six weeks," the company said in a statement to the ASX.
"The board of Billabong reinterates that there is no guarantee that an acceptable binding proposal will be forthcoming from either the Sycamore Consortium or the Altamont/VF Consortium. In the meantime Billabong shareholders do not need to take any action," the company said.