TPG has been granted permission to conduct due diligence on Billabong, following an offer from the private equity group to buy the struggling surfwear retailer.
In a statement this morning, Billabong said the move would hopefully reduce the conditionality of the TPG proposal and improve the company’s understanding of the chain’s value.
But it also said the move doesn’t guarantee a deal.
“In fact, the board of Billabong does not believe that the proposal reflects the fundamental value of Billabong in the context of a change of control transaction,” the company said.
TPG has offered $1.45 a share for the company – 32% higher than the company’s last closing price.
It originally offered $850 million earlier this year, which Billabong rejected.
This article first appeared at SmartCompany.