TPG Capital Monday made a renewed effort to acquire Australia’s surf wear retailer, Billabong International. The U.S. based private equity firm made a new $825 million takeover offer for Billabong, coming hot on the heels of their Nixon joint venture deal struck last week.
The move follows Billabong’s restructuring and downsizing efforts aimed at stabilizing the company as it fights to prevent losses. According to Billabong, the TPG proposal is subject to due diligence, subject to finance and conditional on a number of other matters, but it does not preclude the Nixon transaction announced on Friday 17 February, 2012. Billabong’s shares soared Monday by over 8 per cent following the announcement of the new takeover offer from TPG.
TPG made its first offer early last week, at $3 per share, valuing Billabong at A$765 million. However, Billabong Friday decided to sale part of its top performing brand, Nixon, with the net proceeds going into debt settlement. The Nixon brand half stake was sold at $464 million. Originally, TPG’s first offer was conditional on no asset sales, but the new package does not preclude Nixon.