Billabong has announced that Paul Naude, the company’s president of the Americas and a director on its board, is stepping aside temporarily to attempt a leveraged buyout of the surfwear maker and retailer.
Naude will be discussing prospective financiers over the next six weeks, hoping to gain support for the takeover.
Billabong’s shares increased by up to 17 per cent on the news, reports Faifax’s Business Day.
The board approved of Naude stepping aside temporarily (and insisted it did not influence the decision) on conditions including that Naude’s discussions take no longer than six weeks, nothing confidential is disclosed with potential financiers, and that he not contact directors (other than the chairman or CEO), shareholders, employees, customers, suppliers or the media.
AAP reports that Billabong lost $275.6 million last financial year.
Several takeovers from private equity firms, including TPG, have been unsuccessful.