Billabong announced today that it has entered into a 10-day exclusive window to evaluate a purchase offer of 100% of its shares for $0.60 per share ($299 million) by Paul Naude and Sycamore Partners. Trading of Billabong’s shares also resumed following a trading halt on April 2.
The bid is a 45% reduction from the Sycamore Consortium’s original purchase proposal for $1.10/share and 18% below what shares last trade before the halt of $0.73.
"Investors need to take the opportunity to exit the stock," Nick Berry, an analyst at Nomura Holdings Inc. in Sydney, said by phone in an interview with Bloomberg. "There's no guarantees around the ability to service debt around the longer term and the shares will probably reopen tomorrow at a discount to 60 cents."
Here are the details: