SYDNEY, April 5 Revised takeover offers for
Australia's Billabong International Ltd have come in
considerably lower than indicative bids, with the highest
valuing the struggling surfwear 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 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$0.50 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withdrawn after due diligence.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.