Sports apparel seller Billabong International Ltd
The bid of A$1 per share made by Boardriders, formerly known as Quiksilver, represents a premium of 4.2 percent to Billabong`s closing price on Thursday and a 28.2 percent premium to the stock price before the offer was announced on Dec. 1, 2017.
Billabong directors unanimously recommended the agreement, the company said in a statement, fulfilling one of the conditions of Boardriders` offer.
"While Billabong has made significant operational progress in recent years, the board is also mindful of the fact that, in the absence of the scheme, Billabong shareholders face ongoing risks and uncertainties associated with the business," Billabong Chairman Ian Pollard said.
Billabong`s brands include RVCA, Element and Von Zipper.
U.S. private equity firm Oaktree Capital Management LP holds a 19 percent stake in Billabong and is one of its two senior lenders. Funds managed by Oaktree also have a majority interest in Boardriders.
Oaktree was not immediately available for comment.
($1 = 1.2716 Australian dollars)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)