Embattled surfwear giant Billabong has granted its preferred suitor more time to make a call on purchase, as the takeover saga drags on.
As previously reported on ragtrader.com.au, Billabong has been the subject of a bidding war between Altamont Capital Partners and Sycamore Partners Management since January this year.
However, the company recently made a move in favour of the Sycamore Consortium, when it confirmed earlier this month that it would grant the group a 10 business day period of exclusivity in relation to a non-binding proposal to acquire 100 per cent of Billabong's shares for AU$0.60 cash per share.
This period of exclusivity concluded on April 23, 2013, but Billabong has now revealed that it will grant Sycamore an extension to the exclusivity period of a further 10 business days, as requested by the group.
Commenting on the move, Billabong and the Sycamore Consortium said both have been working constructively and with “the utmost cooperation to progress the Quality of Earnings report and the potential transaction”.
Accordingly that extension has been granted and the period of exclusivity will now conclude on May 8, 2013.
It is anticipated that the extension will be adequate for the completion of the report and its consideration.
Billabong has stressed, however, that despite these recent developments, there is no guarantee that the proposed transaction will proceed. The company added that neither the Consortium nor Billabong is under any obligation to proceed with the proposed transaction unless and until each party determines, in its sole discretion, to execute and deliver a binding Scheme Implementation Deed and proceed with the transaction.