Billabong announced today that its board is moving ahead with the purchase proposal process with Paul Naude’s group and will grant the group the opportunity to conduct non-exclusive due diligence. The process is expected to take up to six weeks.
Here’s the full release:
GOLD COAST, 24 December 2012: On Wednesday, 19 December 2012, the Board of Billabong International Limited (“ Billabong” or the “ Company”) announced that it had received a confidential, indicative, non-binding and conditional proposal from a consortium comprising Paul Naude, Sycamore Partners Management as “cornerstone equity investor” and Bank of America Merrill Lynch as “lead debt financier” (the “ Consortium”) to acquire all of the shares in Billabong for $1.10 cash per share. On the same day and following the Company’s trading update, Billabong subsequently announced that Paul Naude confirmed in writing that the Consortium’s proposal remained unchanged apart from the removal of the confidentiality condition.
The Board of Billabong, together with its advisors, has reviewed the proposal in detail. The Board has concluded that the Consortium will be granted the opportunity to conduct non-exclusive due diligence. The Consortium has now signed a confidentiality agreement with Billabong with conditions appropriate for a transaction of this nature. It is expected that the due diligence process will take up to six weeks.
The Board of Billabong reiterates that there is no guarantee that, following a period of due diligence by the Consortium, an acceptable binding proposal will be forthcoming. In the meantime Billabong shareholders do not need to take any action in relation to this matter.