Following TPG’s second bid, Billabong has granted the company the opportunity to conduct non-exclusive due diligence in order to reduce the conditions attached to the offer and improve its understanding and valuation of the retailer.

According to Billabong, the Board and advisors reviewed the proposal in detail.

However the company noted that despite this due diligence it would mean it is accepting TPG’s offer of purchasing the company’s at $1.45 cash per share.

“There is no guarantee that, following the due diligence process, a transaction will be agreed or that the Board will recommend an offer at the current proposed offer price,” the company said.

“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 also said it is Board’s responsibility to “ensure that the medium to long term prospects… are reflected in the value realised by Billabong’s shareholders”.