MELBOURNE Nov 19 Australian surfwear company
Billabong International Ltd, which had potential buyers
withdraw takeover offers last month, said on Monday one of its
directors wanted to investigate a possible leveraged buyout of
Billabong shares jumped as much as 17 percent on the news to
value the firm at A$412 million ($425 million).
The company said board member Paul Naude would stand aside
from his role as president of the Americas while he looked at
putting together a buyout proposal.
"Mr Naude has advised that he is seeking to hold discussions
with potential financiers, both debt and equity, to gain their
support for a potential change-of-control transaction of
Billabong," the company said in a statement.
Billabong said there was no arrangement with any other
executive about the proposal, and put conditions on Naude's
proposal including providing no confidential information to
The shares last traded up 16.2 percent at A$0.86. They are
up from record lows below A$0.80 hit in October afters suitors
walked away from a bidding process.
Private equity firms TPG and Bain Capital LLC
withdrew from $700 million bids for Billabong last month,
without giving reasons.
Billabong was initially approached by TPG in February but
rebuffed an offer of A$3.30 a share, opting instead to sell half
of its watch brand Nixon and raise A$225 million in equity to