- Vivian Hendriksz |
London - Quiksilver made a 150 USD dollar (110 million pounds) takeover bid for Australian rival Billabong.
Boardriders Inc, the parent company behind surf and skatewear brands Quiksilver, Roxy and DC shoes, has made an indicative bid to acquire all of Billabong shares, others than those already owned by Boardriders’ related companies, at 1 USD cash per share through a scheme of arrangement.
The bid could be a potential turnaround for the struggling surf label, which had a hard time turning a profit over the past five years. Billabong reported a loss of 58 million USD ( 43 million pounds) this year, which is three times its reported loss in 2016. The takeover bid comes 5 years after Billabong rejected another potential takeover offer, which was four times higher than its current offer from Boardrider.
Billabong’s Board of Directors has granted Boardrider due diligence access to make a formal proposal to take over the company, a process which will likely take a number of weeks. However, Billabong noted in a statement that the start of the procedure may not lead to an official bid. The Australian label has appointed Goldman Sachs as its financial advisor and Allens as its legal advisor in the meantime.
Quiksilver Inc, which previously changed its names to Boardriders Inc earlier this year, has also undergone a turbulent time over the past few years. The skate and surfwear company went bankrupt in 2015 before it was restructured and became a privately-held company with the aid of private equity firm Oaktree Capital, which still holds a majority interest in the company. Oaktree Capital also holds a 19 percent minority stake in Billabong and is one of its two senior lenders.
Photo: Quiksilver, Facebook