Billabong International Ltd., an Australian retailer of board sports products, received an indicative and nonbinding proposal from U.S. retailer Boardriders Inc. to acquire all of the company's shares at A$1 per share via a scheme of arrangement, according to a Dec. 1 announcement from Billabong.
Boardriders is the owner of sports and surf goods brands such as Quiksilver and Roxy. Oaktree Capital Management LP, which manages funds that hold a majority stake in Boardriders, already has 19% of Billabong's shares through controlled entities and is one of Billabong's two senior lenders, according to the release.
The Australian company's board granted due diligence access to Boardriders to allow the latter to place a formal proposal to Billabong. The company expects the process to take several weeks and noted that there is no certainty the proposal will result in an offer.
The takeover bid is subject to shareholder and court approvals, as well as regulatory approvals and clearances.
Goldman Sachs will act as Billabong's financial adviser, while Allens is its legal adviser.
As of Dec. 1, US$1 was equivalent to 1.32 Australian dollars.
