Billabong Still in Talks with Buyers

Billabong International Ltd. said on Tuesday it is still in discussions with two suitors over a possible sale. It requested a trading halt until
Thursday, or until it is ready to make an announcement if earlier. Final bids were due last week.

It has received matching bids of A$1.10 a share. The offers value the company at A$527 million ($549 million). The first was from a consortium of private equity firm Altamont Capital Partners and VF Corp, and another from Billabong’s former U.S. boss Paul Naude and private equity firm Sycamore Partners. VF Corp only wants the Billabong namesake brand and plans to give
Altamont the rest of the portfolio, which includes Von Zipper and
Element.

Billabong said on Tuesday that discussions in relation to these
proposals remain incomplete.

Analysts told Reuters they expect the final bids to come in lower, A$0.80-90.

Since the two groups made their initial offers, Billabong has posted a first-half net loss of A$536.6 million and lowered its full-year guidance, citing difficult trading conditions in Europe and a disappointing performance from its Nixon watch brand.