Billabong suitor backs out

Surfwear giant Billabong has confirmed the exit of a second private equity firm interested in acquiring the company.

As previously reported on ragtrader.com.au, Billabong received a second takeover offer from an unnamed private equity firm on September 6, rivalling an initial offer from US private equity firm TPG.

The mystery party, interested in acquiring all of the shares in Billabong, offered an indicative, non-binding and conditional proposal for a “cash consideration value of around $1.45" per share.

However, Billabong has now revealed that the anonymous second suitor has since pulled its offer, which was on par with the rival TPG offer of about $695 million.

“The party which was referred to in the September 6 announcement has withdrawn from the formal process. Billabong further advises that the previously announced formal process [concerning TPG] is continuing.

“[However], the board of Billabong reiterates that there is no guarantee that, following this formal process, a transaction will be agreed or that the board will recommend any proposal.”

The current offer by TPG for the sum of $695 million is below TPG's initial bid of $850 million in February.

Billabong, which currently owns Board Sports Retail Group and its retail businesses Surf Dive 'n' Ski, Jetty Surf, Surfection and Co-Op Surfection, has previously said the standing offer undervalues the company and its assets.

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