BILLABONG IN QUIKSILVER'S SIGHTS FOR TAKEOVER

BILLABONG IN QUIKSILVER'S SIGHTS FOR TAKEOVER

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.

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