BILLABONG GIVES QUICKSILVER PARENT THE GREEN LIGHT FOR TAKEOVER BID

TWO of Australia's most iconic surfwear retailers are one step closer to becoming one now that Billabong (ASX: BBG) has given Boardriders the go ahead to takeover.

Billabong International Limited today announced it has entered into a deal with Boardriders, the parent company of major competitor Quicksilver, to acquire all of the shares in Billabong.

Boardriders will acquire every share at a price of $1 per share in cash via a schame of arrangement. The deal is estimated to be worth around $200 million.

Boardriders is controlled by funds managed by Oaktree Capital Management. Oaktree already holds 19 per cent of the shares in Billabong and is one of Billabong's two senior lenders.

Billabong directors have unanimously made a recommendation to shareholders that they vote in favour of the deal, in the absence of a superior proposal.

The board of Billabong says the $1 per share deal represents an attractive premium above Billabong's closing price of $0.78 per share on 30 November 2017; that date being the day Boardriders first approached Billabong with its proposal to acquire the company.

Billabong Chairman, Ian Pollard, says that shareholders face ongoing risks if they do not accept the Boardriders proposal. Read more

David Simmons - Business News Australia - 5 Jan 2018