$380m sale of Billabong barrels ahead
A SALE of Burleigh-based surfwear giant Billabong to Quiksilver owners Boardriders Inc has moved a step closer.
This morning Billabong announced it has entered into a 'Scheme Implementation Deed' for Boardriders to acquire all Billabong shares at $1 per security.
The deal, which needs the approval of shareholders, values Billabong at $380 million.
Boardriders is majority-owned by funds manager Oaktree Capital, which already holds 19 per cent of Billabong shares and is a major lender to the company.
Quiksilver Inc changed its name to Boardriders in March, a move aimed at embracing the company's full suite of brands, which include Quiksilver, Roxy and DC Shoes.
Billabong's directors, which include founder Gordon Merchant and CEO Neil Fiske, said the deal is in the best interest of shareholders and that they intend to use their combined shareholding to vote in favour of the scheme.
The reasons given included that the $1 per share offer is 28 per cent above Billabong's closing price of 78¢ on November 30 - the day prior to the offer.
As well as the assent of shareholders, the deal is also subject to the approval of Australia's Foreign Investment Review Board.
Billabong said a booklet explaining the scheme will be sent to shareholders next month and a vote is likely to take place in March,
If shareholders approve, the deal could be ticked off by April.
Billabong has been in the process of consolidating its brands, offloading Tigerlily for $60 million and focusing on three core brands - Billabong, Element and RVCA.