TWO iconic Australian surf brands could soon become one, as Billabong announced to the ASX on Friday morning that it had received a non-binding takeover proposal worth around $200 million.
The embattled retailer said it received the indicative offer from Boardriders, the entity responsible for Quiksilver and Roxy, to acquire all its shares at a price of $1.00 cash per share.
This offer values Billabong shares at a six-month high, 22 cents above Thursday's closing price.
Billabong has opened its books to Boardriders, which is now an American-owned company, however says there is no guarantee that the it will result in an official takeover offer.
"The indicative proposal is subject to a number of conditions, including due diligence to Boardriders' satisfaction, securing committed financing, unanimous recommendation from the Billabong board and entry into a definitive scheme implementation agreement between the parties," said Billabong in a statement to the ASX.
Billabong shares swelled yesterday amid takeover rumours, adding to optimism that the company is turning its luck around following a string of heavy losses.
Billabong posted a $77.1 million net loss in FY17, which was more than triple its poor result from FY16.
The company continues to claw its way back from a near death experience four years ago when it revealed a staggering $860 million loss.
Billabong has ensured it will keep shareholders updated on the possibility of a Boardriders takeover in due course.
Business News Australia
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