ASB MAGAZINE: Boardriders, Inc. bid for Billabong took another step forward today when the Federal Court ordered that a meeting of Billabong shareholders be convened on the 28th of March to consider and approve the scheme of arrangement under which Boardriders will acquire all of the Billabong shares, at a price of A$1.00 per share in cash, via a scheme of arrangement. The 192 page Scheme Booklet was also registered by the Australian Securities and Investments Commission today. The approximately $198 million deal, if approved by shareholders, will combine both Quiksilver and Billabong and emerge as the world’s biggest action sports brand.
Boardriders is controlled by funds managed by Oaktree Capital Management, L.P. (Oaktree). Oaktree already holds approximately 19.3% of the Billabong shares and is one of Billabong’s two senior lenders. If the scheme is approved by shareholders, Billabong intends to apply to the Court for orders approving the scheme.
In validating the scheme, independent expert, Grant Samuel & Associates Pty Ltd, has concluded that the scheme is fair and reasonable and therefore in the best interests of shareholders, in the absence of a superior proposal. The Billabong Board continues to unanimously recommend that Billabong shareholders vote in favor of the scheme. Billabong said that each Director intends to vote all the Billabong shares held by them in favour of the scheme.
We’ll continue to follow the deal and update as new information is released. For our thoughts one why the deal looks certain to proceed read our article here