Pacific Brands Shares Soar as KKR Offers $600m Takeover

Shares of clothing manufacturer Pacific Brands ( PBG) jumped to as much as 11 cents or 20 per cent to 67 cents in early trade after the company confirmed that it has received an unsolicited approach from US private quity giant KKR to buy the company.

"The board of Pacific Brands, together with its advisers Flagstaff Partners and Minter Ellison, is considering the approach and preliminary discussions are being held with KKR," said Pacific Brands.

According to The Australian Financial Review, KKR is offering to buy the company for $600 million, compared to its market value of $511 million, with the price closed to 56 cents yesterday. The share price of 67 cents in the early trade now values the company higher to $611 million.

However Pacific Brands said that, "There is no certainty that these discussions will lead to any agreement being reached between the parties."

Pacific Brands reported a $312 million loss in the previous financial year.