Takeover target Billabong International Limited
(ASX:BBG) says it will grant its suitor, US private equity firm TPG Capital, the right to conduct non-exclusive due diligence.
TPG Capital launched a new takeover offer earlier this week, offer valuing Billabong at $695 million, 18 per cent down from TPG’s first offer in February.
Billabong’s board says it has reviewed the latest proposal in detail and says it expects the due diligence process to take several weeks.
The board believes due diligence will enable TPG to reduce the conditionality of its proposal and improve TPG’s understanding and valuation of Billabong.
Billabong International reported a net profit of $15.975 million in the first half of the 2012 financial year.
