A consortium led by VF Corporation has emerged to challenge the Paul Naude-led coalition attempting to buy surfwear maker Billabong.
Billabong announced last November that Naude, a director and the president of its US operations, was stepping down to attempt a leveraged buyout. His consortium, including Bank of America Merrill Lynch and Sycamore Partners, made an offer of $1.10 per share in December.
The Sydney Morning Herald and others have reported that VF Corporation (the owner of clothing companies including Wrangler, Lee Jeans and North face) – joined by Altamont Capital Partners – has emerged to also offer $1.10 per share.
''Billabong will now run a process to evaluate whether a change of control proposal, at a price and on terms that the board would recommend, can be secured,'' said the company in a proposal update posted on the ASX
''This process is expected to take approximately six weeks.”
The Australian points out that this is the sixth buyout attempt for Billabong in the last year. The first, from private equity group TPG, was $3.00 per share (later was raised to $3.30 a share).