Surfwear retailer Billabong says it will formally consider a takeover after receiving its second offer in the space of six weeks.
The new proposal, lodged this week from an unnamed third party, involves a cash offer of $1.45 per Billabong share, valuing the retailer at $694.5 million.
Billabong received an equally valued offer from private equity firm TPG in July, which the Billabong board said was too low.
Billabong on Thursday said the new offer was also too low, but added it would undertake a formal process to evaluate whether a takeover offer could be secured at a value it deems appropriate.
"The board of Billabong now considers that the interests of shareholders will be best served by a formal process to thouroughly evaluate whether a change of control offer, at a price and on terms that the board would recommend, can be secured," the company said in a statement today.
That process was expected to take several weeks, it said.
TPG was carrying out due diligence on Billabong, and the new suitor would also be granted the opportunity to do the same, Billabong said.
Confidentiality agreements had been signed with both suitors, it added.The company made a loss of $275.6 million in the 2011/12 financial year, and has implemented a restructure plan involving store closures and the dropping of several product lines.
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