Billabong agrees to $380 million US takeover

Former Billabong Chief Executive Matthew Perrin has lost an appeal to overturn his fraud conviction, but will be paroled six months early.

The board of Australian surfwear company Billabong has agreed to a $380 million takeover by US company Boardriders, the owner of Billabong's competitor Quiksilver, as well as Roxy and DC Shoes.

The deal is expected to be finalised by April at the earliest, but is subject to shareholder and regulatory approval.

Once that happens, Billabong will become a private company and be taken off the Australian share market.

Boardriders describes itself as "a global action sports and lifestyle company", with products sold in more than 110 countries.

Further up this corporate structure, Boardriders is majority-owned by US investment management firm, Oaktree Capital Management.

Under this proposed deal, Boardriders will pay $1.00 for every ASX-listed share in Billabong - other than the 19% stake which is owned by Oaktree.

This offer is 28% higher than Billabong's share price of 78 cents - its value on 30th November last year, the day before Boardriders made its initial approach.

Billabong's directors entered into a scheme of arrangement with Boardriders on Friday, and is urging its shareholders to vote in favour of the deal.

Back in August last year, Billabong posted a full-year loss of $77.1 million - more than triple its net loss from 2016.

Billabong reached this result after slashing $106.5 million off the value of its goodwill and secondary brands, including Von Zipper, RVCA, Xcel and Kustom.

Billabong Chairman Ian Pollard explained “the Board considers that it will become necessary for Billabong to materially reduce debt if it is to continue with its current strategy which, given the company's high debt levels is expected to require asset sales or a dilutive equity raising.

"Having regard to these factors, and the fact that shareholders are being offered an attractive premium for their shares, the Board believes this offer is in the best interests of shareholders."

Amid fears of job cuts as a result of this deal, a Billabong spokesperson confirmed none would be made in the near-future.

The spokesperson told the ABC “there will be no immediate impact on jobs.

"Keep in mind, these are large global brands and any integration process will take a number of years."

3rd December 2017 - QUIKSILVER PLANS US$150 MILLION TAKEOVER OF BILLABONG 

6th September 2017 - BILLABONG’S MATTHEW PERRIN LOSES APPEAL AGAINST FRAUD CONVICTION

8th April 2016 - OWNERS LOOK AT SALE OF FITNESS FIRST’S GLOBAL OPERATIONS 

10th September 2015 - QUIKSILVER FILES FOR BANKRUPTCY IN THE USA 

10th April 2014 - QUIKSILVER AND ROXY BACK VEGEMITE SURFGROMS FOR THREE MORE YEARS

25th July 2013 - BILLABONG PAYS OFF DEBTS AFTER REACHING DEAL WITH US PRIVATE EQUITY FIRM

15th March 2010 - BILLABONG SUED FOR $168 MILLION IN INDONESIA 

29th June 2009 - NUTRI-GRAIN AND BILLABONG MOST RECOGNISED SPORTS SPONSORS