AusBN - The board of Australian surfwear retailer Billabong has agreed to be taken over by US company Boardriders in a deal worth AUS$380 million.
The sale comes after Billabong posted a damaging full-year loss of $77.1 million in August 2017, which sparked a pressing need to reduce debt.
"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," said Billabong's chairman Ian Pollard.
"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."
The deal will see Boardriders pay $1.00 for every ASX-listed Billabong share (apart from the 19% stake owned by Oakfield), at a 28% premium on its share price of 78% cents at the time of first approach.
Boardriders describes itself as ‘a global action sports and lifestyle company’, and is the owner of Billabong’s competitor Quiksilver, along with other brands such as Roxy and DC Shoes. It sells it products in over 110 countries.