Billabong in halt ahead of takeover update

WAVE OF INTEREST: Two consortiums have made $1.10-a-share offers for struggling retailer Billabong. Picture: Adam Head Source: The Courier-Mail

SHARES in troubled retailer Billabong are in a trading halt ahead of an update about its potential takeover.

Billabong is currently in exclusive talks with the Sycamore consortium, made up the retailer's US-based executive Paul Naude and private equity firm Sycamore Partners.

Sycamore Partners has made a $287 million offer for the Australian retailer.

The talks are due to end tomorrow, after the negotiating period was recently extended for a further 10 days.

Billabong today requested its shares be placed in a trading halt ahead of an announcement about the potential takeover.

The halt will last until Thursday at the latest, or until the release of its announcement.

Despite the ongoing talks with Sycamore, Billabong has repeatedly said there is no guarantee a takeover will proceed.

The retailer has also been in talks with rival consortium VF Corporation - the owner of The North Face and Timberland outdoor clothing brands - and private equity firm Altamont Capital Partners.

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JB Hi-Fi shares rise on guidance update

JB Hi-Fi shares are up six per cent after the retailer said it expected full-year profit to increase by up to 11 per cent.

JB Hi-Fi on Friday said it expected sales in 2013 to be around $3.3 billion and net profit to be between $112 million and $116 million.

The figures represent a seven per cent to 11 per cent increase in net profit on the prior year.

At 1pm AEST, its shares were up by 94 cents, or six per cent, to $16.43.

The retailer had previously put sales guidance around $3.25 billion and net profit within the range of $108 million to $112 million.

"This updated guidance has been driven by stronger-than-expected sales in the second half of FY13," the company said.

Sales growth in Australia and New Zealand for the four months ended April 30, 2013, was 10.3 per cent.

The company has opened 13 new JB Hi-Fi stores in FY13, all in Australia.

As at June 30, it will have 177 stores - 164 in Australia and 13 in New Zealand.

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