Boardriders Inc, the global action sports and lifestyle company that owns and operates the Quiksilver, Roxy, and DC Shoes brands, has reaffirmed its proposed acquisition of Billabong is in the best interest of all shareholders.
The combination of Boardriders and Billabong will create the world’s leading action sports company with sales to over 7,000 wholesale customers in more than 110 countries, owned e-commerce capabilities in 35 countries, and over 630 retail stores in 28 countries. It will include some of the most coveted brands in the industry as Billabong, RVCA, Element, VonZipper, and Xcel are added to the Boardriders family of brands.
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News of the acquisition first broke in December of last year, sending shares in Billabong soaring 22%.
Boardriders signed a definitive agreement to acquire all of the shares of the embattled Australian surfwear brand on 4 January. The transaction is expected to close on approximately 24 April 2018, subject to final approvals.
“I passionately believe in the action sports industry and the Boardriders and Billabong teams, and that this transaction represents the best value for all stakeholders – shareholders, employees, vendors and customers,” said Boardriders CEO Dave Tanner. “The combined entity will have greater ability to strengthen and advance the action sports industry in a unique and meaningful way. We are excited to welcome the Billabong team to the Boardriders community and look ahead to what the combined company can achieve.”
But now, Boardriders is speaking out in a bid to clarify some statements made in recent media coverage in Australia.
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By GlobalDataLocal reports claim that, as next week’s shareholder vote on the deal to takeover Billabong nears, Boardriders is reportedly “having trouble convincing key shareholders that the takeover is a good idea”.
According to an article published in Business New Australia, Boardriders CEO David Tanner has called out two shareholders that are undecided on the takeover. These are investment firms Ryder Capital and Adam Smith Asset Management, claims the report, which states the firms hold a combined 15.4% stake in Billabong and are both “slowing down the takeover process”.
“Both shareholders want Billabong to consider its options because they believe the Boardriders offer undervalues the company,” the article says.
The Billabong board of directors, including founder Gordon Merchant, have unanimously voted in support of the acquisition bid.
In a statement yesterday (22 March), Boardriders said to avoid any doubt, the company reserves its right to take whatever action it considers to be in its best interests with respect to the acquisition of Billabong and the terms on which any such acquisition may take place.
“Any statements in the media regarding what Boardriders may or may not do in the future relate only to the scenario where the transaction is voted down at the upcoming meeting of Billabong shareholders, and should be read subject to the aforementioned reservation of rights,” it added.
In a separate statement, published just hours after the first, the firm added “Boardriders considers that Billabong shareholders should not place undue weight on statements appearing in the media (including in relation to the potential consequences of the transaction not proceeding).” It referred shareholders to a scheme booklet which includes an independent expert’s report prepared by Grant Samuel & Associates Pty Ltd and to “carefully review” the information before they make any decision as to whether or not to support the transaction.
“Any Billabong shareholder that is uncertain in relation to these matters may wish to consult their professional adviser before making any investment or voting decision,” it added.
