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TPG makes fresh approach for Billabong

Private equity backer TPG Capital has made a fresh approach to acquire beleaguered Australian surfwear brand Billabong.

Billabong has today (July 24) received a conditional offer from TPG Capital to acquire all of the shares in the company in an offer that values Billabong at AUD $695m (£461m).

This fresh takeover offer follows earlier offers made by TPG Capital for the brand back in February thought to be worth AUD $765m (£518m) which were later rejected by Billabong who said the AUD $3 (£2) per share bid did not represent the value of the company.

However, the most recent offer represents AUD$1.45 - following a profit warning issued by the company at the end of last month.

In a statement Billabong said its major shareholders, Colonial First State Investment and Perennial Value Management, had agreed to sell their share, which equates to 14.5% of issued capital. TPG is expected to file a shareholder notice shortly.

Goldman Sachs is acting as the financial adviser to Billabong, and a representative from the brand said that a further announcement would be made in the coming days.

The Queensland-based brand has also attracted interest from other bidders including sportswear giant Nike and French luxury group PPR, although neither have made formal approaches.

Billabong issued a profit warning for the year ending June 30. The brand said earnings for the year would be $130.5m (£84.0m) to $135.5m (£87.2m) compared to a previous forecast of $158m (£101.2m).

TPG Capital also owns a stake in US casualwear giant J Crew.

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