Australian surfwear brand Billabong has rejected a takeover bid from private equity backer TPG Capital after the company put in a formalised bid worth AUD $765m (£518m).
Earlier this month the Queensland-based brand announced it had received an offer from TPG Capital, the private equity house, which also owns a stake in US casualwear giant J Crew.
However, yesterday Billabong rejected the bid and said the AUD 3 (£2) per share bid didn’t represent the value of the company. The discussions are ongoing with the brand allowing TPG the opportunity to raise its offer.
Billabong has said it will close between 100 and 150 shops of its 677 company-owned stores that are underperforming, with net profits in its first half falling.
Also earlier this month, Billabong announced that it had received a separate offer to sell 48.5% of its Nixon brand to another private equity firm, Trilantic Capital Partners and another 3% of the Nixon brand to Nixon’s own management team.