Australian surfwear brand Billabong has placed its shares in another trading halt today (7 May) ahead of an update regarding the potential sale of the business.

The company said unless the Australian Stock Exchange decides otherwise, shares will remain suspended until Thursday or when an announcement is released. 

The news comes after Billabong extended exclusive talks with Sycamore Partners and former Americas boss Paul Naude last month to consider the potential sale of the business.

Sycamore Partners and a consortium led by VF Corporation made competing offers of AUD1.1 per share early this year. After due diligence, Sycamore dropped its bid to AUD$0.60 per share and continued in exclusive talks with Billabong.

Under the proposal, valuing the company at AUD287m (US$300m), Billabong founder Gordon Merchant and former employee Collette Paull must exchange their combined shareholding of about 16% stock in a vehicle being set up for the takeover.

The Australian surfwear brand swung to a first-half loss of AUD536.6m in February, after writing off the value of its brands and posting a sales decline of 8.1% to AUD702m. It also said it would cut the number of apparel suppliers it uses to less than one-fifth of the current total.