Billabong sale to Quiksilver owner moves step closer

BILLABONG shareholders will have their chance to vote on the company’s proposed sale to Quiksilver owners Boardriders Inc at a meeting scheduled for next month.

The company released a scheme booklet recommending shareholders vote in favour of the $1 per share deal, along with a favourable review from Grant Samuel & Associates Pty Ltd. The meeting will be held at 10am on March 28.

Billabong chairman Ian Pollard said the deal was good value. “Importantly for shareholders, the independent expert concluded the Boardriders Scheme of $1 per share is fair and reasonable,” he said.

“Despite the proposal being public for almost three months, there has been no counter bid received.

“The board, having closely considered other alternatives, unanimously believes that the Boardriders offer provides the best outcome for shareholders — and a far more certain one.”

The proposal from Boardriders Inc is a $1 cash per share arrangement. The shares were trading at 78c before the proposal was announced but have been hovering in the high 90c range since. Boardriders is majority owned by funds manager Oaktree Capital, which already holds 19 per cent of Billabong 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 has been consolidating its brands, offloading Tigerlily for $60 million and focusing on three core brands — Billabong, Element and RVCA. Billabong is set to release its first-half results next Friday.