SYDNEY: The board of troubled Australian surfwear company Billabong announced on Friday it had agreed to a 315-million-dollar takeover by Boardriders, owner of US rival brand Quiksilver.
The offer must now be accepted by Billabong’s shareholders.
Boardriders is owned by US-based Oaktree Capital Management, which already owns a 19 per cent stake in Billabong and also controls nearly all the shares in Quiksilver. Oaktree made its bid for Billabong in December.
The decision to accept Oaktree’s offer was prompted by Billabong’s significant amount of debt, chairman Ian Pollard said in a statement.
“The board considers that it will become necessary for Billabong to materially reduce debt if it is to continue with its current strategy which, given the company’s existing high debt levels, is expected to require asset sales or a dilutive equity raising,” he said.
Oaktree valued Billabong’s equity at about $156 million.
Quiksilver was bankrupted in 2016 and then renamed itself Boardriders after being bought by Oaktree. Boardriders also owns the brands Roxyand DC Shoes.— dp
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