It’s official. Billabong will cease trading on the Australian Securities Exchange today after the court has approved the acquisition deal with US-based retail company Boardriders, parent company of Quicksilver.
Surfwear retailer Billabong has been given the green light by the Federal Court of Australia to proceed with the acquisition by Quicksilver parent company, Boardriders. Billabong will suspend trading on the ASX at the close of trade today.
Under the scheme of arrangement, shareholders will receive a cash payment of $1.05 per share on the implementation date, 24 April 2018.
Quiksilver says the combination of Boardriders and Billabong will create a diversified 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. The combined company will include high profile lifestyle brands, including RVCA, Element, VonZipper, and Xcel are added to the Boardriders family of brands.
There was a last minute change to the deal last month, with the price increasing by 5 percent per share. Over 85 percent of shareholders voted in favour of the deal, which meant that it passed the 75 percent needed for the acquisition to proceed. Today’s court decision means that the Boardriders offer is now legally effective.
“We are excited to become one family with the Billabong team, and look forward to working together arm-in-arm to achieve the promise that this combination offers,” said Dave Tanner, Chief Turnaround Officer and now Chief Executive Officer of Boardriders, earlier this year.