Shares in embattled Australian surf wear brand Billabong International have jumped 22% today (1 December) after it said it has received a takeover bid from Boardriders, the company behind rival Quiksilver.

Boardriders wants to acquire all of the company’s shares that it does not already own for AUD1 each, in a move that values Billabong at around AUD198m (US$150m).

Boardriders is majority-owned by private equity firm Oaktree Capital Management, which already holds 19% of the shares in Billabong and is one of Billabong’s two senior lenders.

Billabong’s board has decided to grant due diligence access to Boardriders to enable it to put forward a formal proposal. Management expects the process to take a number of weeks and has warned shareholders that there is no certainty a deal will go ahead.

The bid comes just two months after Billabong saw its full-year losses widen to AUD77.1m (US$61.1m) after writing down the value of several of its brands, including Kustom, Honolua, Xcel and RVCA. Sales fell 4.7% to AUD974.7m.

Billabong is in the midst of a multi-year initiative to try to turn around its business. Recent initiatives have included the sale of some of its smaller labels in a bid to focus on its three “big brands” – Billabong, RVCA and Element – and drive down debt.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It has already seen a number of takeover talks collapse, most recently in 2013 when Altamont Capital Partners and Sycamore Partners expressed an interest in the business.