TPG Capital offered to buy Billabong for $823 million

TPG Capital offered to buy Billabong International Ltd. for $823 million after a slump in the surfwear maker’s earnings and share price.

The offer was at 68 percent premium to the previous closing price. Billabong said it’s proceeding with asset sales, job cuts and store closures. The shares climbed as much as 64 percent.

With 677 stores globally and brands including Element and Von Zipper, Billabong, became a target after its share price more than halved since cutting forecasts on Dec. 19 and flagging a review of its capital structure.

Tim Montague-Jones, an analyst at Morningstar Inc., said that "The TPG offer at A$3 is quite opportunistic when you consider the value of the business and the value of its brands,”, “I don’t think they would sell at A$3 and it would have to be a lot higher than that".