Independent expert gives Billabong takeover green light

BillabongBillabong’s board continues to recommend company shareholders vote in favour of the proposed acquisition by US firm Boardriders, after independent expert Grant Samuel & Associates said the scheme was fair and reasonable.

The surfing retailer announced in January that it had entered into a Scheme of Arrangement under which Boardriders Inc would acquire all of the Billabong Shares at a price of A$1.00 per share in cash.

Boardriders is controlled by funds managed by Oaktree Capital Management, which holds approximately 19.3 per cent of Billabong shares and is one of the retailer’s two senior lenders.

The approximately $198 million deal, if approved by shareholders, will combine two of the largest global active sports brands.

Gordon Merchant, a director of Billabong owns 12.8 per cent of the company’s shares and also intends to vote in favour of the scheme.

In January, Billabong chairman Ian Pollard said despite making “significant operational progress in recent years” that it will become necessary for the retailer to materially reduce debt if it is to continue with its current strategy.

Pollard said given the company’s already high debt levels, it is expected to require asset sales or a dilutive equity raising.

A meeting has been scheduled for March 28 for shareholders to vote on the scheme.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

Loading...

Inside Retail Polls

Myer's new chief executive
Is John King the right CEO to lead Myer's turnaround?

Twitter

Nordstrom capitalises on positive retail conditions in Q2. https://t.co/4A3mc13lgW

1 hour ago

Australians can now use Apply Pay and Halo rings at 3600 post offices. https://t.co/h8bapXzfSU

2 hours ago

44.2 per cent of gross profit came from Kogan's exclusive brands. https://t.co/qnodcTm2HH

4 hours ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered