Billabong saved at last, pending ASIC formalities

Billabong saved at last, pending ASIC formalities

The Federal Court has given the go-ahead for Boardriders International, parent company of Quiksilver, to take over Billabong (ASX: BBG) as early as next week.

The court approved the scheme between Billabong and its shareholders under which Boardriders will acquire all shares in Billabong, other than those already owned by Boardriders' related entities including Oaktree Capital Management.

Billabong expects to lodge a copy of the court orders with the Australian Securities and Investments Commission on Monday 9 April, at which point the scheme will become legally effective.

The buyout marks a light at the end of a very long and dark tunnel for Billabong, which has been beset by troubles for the better part of eight years.

Over the three consecutive financial years prior to 2015, Billabong suffered a near death experience when it racked up losses totalling more than $1.3 billion.

Billabong posted a full-year net loss of $77.1 million last year, however it returned to optimism during FY18 when Boardriders revealed its intention to take over the company.

The buyout proposal, valued at $208 million, was given the go-ahead by shareholders in March 2018.

Just prior to the shareholder meeting in March, Billabong and Boardriders entered into an agreement to increase the consideration per share from $1.00 to $1.05 per share.

The agreement was passed by the majority of shareholders with 95.45 per cent voting in favour of the agreement.

Billabong is the second embattled surfwear retailer to have been thrown a lifeline this week, after SurfStitch announced its sale to EziBuy on Thursday.

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