SYDNEY Jan 14 Australian surfwear company
Billabong International Ltd received a second takeover
offer from U.S. clothing company VF Corp and a private
equity firm that matches a A$556 million ($586.55 million) bid
by its U.S. boss, Paul Naude.
Billabong said on Monday it will allow VF and the firm,
Altamont Capital Partners, to see its books, after already
opening the accounts to a consortium led by board director Naude
and New York-based private equity firm Sycamore Partners.
Both groups have offered A$1.10 per share for the struggling
Australian company, which issued its third profit warning in a
year in December.
Billabong said it would evaluate the proposals to determine
whether it can secure a deal "at a price and on terms the board
"This process is expected to take about six weeks," the firm
added in a statement to the Australian Stock Exchange.
Naude and Sycamore Partners unveiled their approach on Dec.
18, the same day Billabong announced its latest profit warning,
when it said annual earnings could be 15 percent lower than
The company had a tumultuous 2012, alienating investors
after rejecting a A$3.30 bid by TPG Capital in February
as too low. Subsequent offers of A$1.45 from TPG and Bain
Capital were withdrawn after due diligence.
Billabong, whose brands include its namesake, as well as Von
Zipper and Element, has sold off key assets and replaced its
chief executive in the past year as a result of profit
To turn the tide, new Chief Executive Launa Inman recently
outlined a four-year strategy to simplify the business and close
Billabong's shares closed at $A0.845, down 1.7 percent,
before the announcement on Monday.
On Friday, Inman announced the appointment of Peter Myers, a
former Ten Network and APN News and Media executive, as chief
financial officer after the departure of former CFO Craig White
shortly before Christmas.
Naude stepped aside from his position as president of
Billabong's U.S. business to mount the takeover bid.
VF Corp has more than 30 brands, including the North Face,
Wrangler, Timberland, Vans and Lee. The company, which has
expressed an intent to acquire action sports brands, is
primarily interested in the Billabong brand. Altamont is
interested in Billabong's other brands and related assets.