Frolics apparel seller Billabong International said on Friday it had entered an contract with Boardriders for the U.S.-based firm to buy the Australian company for about 197.7 million Australian dollars ($155 million).
The bid of A$1 per allocate made by Boardriders, formerly known as Quiksilver, represents a premium of 4.2 percent to Billabong’s terminate price on Thursday and a 28.2 percent premium
to the stock price previous to the offer was announced on Dec. 1, 2017.
Billabong directors unanimously recommended the agreement, the players said in a statement, fulfilling one of the conditions of Boardriders’ offer.
“While Billabong has boosted significant operational progress in recent years, the board is also mindful of the act that, in the absence of the scheme, Billabong shareholders face ongoing hazards and uncertainties associated with the business,” Billabong Chairman Ian Pollard told.
Billabong’s brands include RVCA, Element and Von Zipper.
U.S. private impartiality firm Oaktree Capital Management holds a 19 percent ante in Billabong and is one of its two senior lenders. Funds managed by Oaktree also make a majority interest in Boardriders.
Oaktree was not immediately available for comment.