Naude Makes Alleged Billabong Purchase Bid; Company Halts Trading

Billabong (ASX Code: BBG) announced it is halting trading of its shares pending an announcement “of a possible change of control proposal.”

Many major news outlets including Bloomberg and the Wall Street Journal are citing insider sources that Billabong President of Americas and Director Paul Naude has teamed up with a private equity group, Sycamore Partners, and has put forth a bid to purchase the company at $1.10 per share, or AUD $527million. While the offer is far below TPG’s bid of $694 million, Billabong shares climbed 4.8 percent to 98 Australian cents today before being suspended

In mid-November, Naude announced he was stepping aside in order to put forward a proposal for a leveraged buyout of the company

The trading halt is in effect until the beginning of trading on Wednesday, December 19, or when the announcement is made, which ever comes first.

Stay tuned…