Fri July 27, 2012 8:09pm
TROUBLED surfwear retailer Billabong says it will allow TPG to look at its financial accounts following the US private equity group's $695 million takeover offer.
TPG on Tuesday unveiled a second bid for Billabong, offering $1.45 a share.
Billabong on Friday said its board and advisers had reviewed the proposal in detail.
They had decided to allow TPG to carry out non-exclusive due diligence in order to reduce the conditions attached to the bid and improve its understanding and valuation of the retailer.
However, Billabong said that the due diligence process, which is expected to last several weeks, would not necessarily lead to TPG proceeding with a takeover.
"There is no guarantee that, following the due diligence process, a transaction will be agreed or that the board will recommend an offer at the current proposed offer price," Billabong said in a statement.
"In fact, the board of Billabong does not believe that the proposal reflects the fundamental value of Billabong in the context of a change of control transaction."
Billabong said it had established and developed many of the leading brands in the global sports market, including RVCA and Element.
The company is preparing to unveil a three-year transformation strategy focused on reinvesting and reinvigorating its brands when it reports its full year earnings results, scheduled for August 27.