On February 14th, Billabong released a 194 page document explaining the deal under which Boardriders (formerly Quiksilver and owned by Oaktree) will buy it for $1.00 a share (all number in Australian dollars unless otherwise noted). You can go to this page and click on “Court Orders Convening of Scheme Meeting” to download the document as a PDF. It includes the independent expert’s report prepared by Grant Samuel & Associates Pty Ltd (“Samuel”) explaining and justifying the purchase price.
Perhaps the best way to start is to review a little industry history. I posted a link to “Subcultural enterprises, brand value, and limits to financialized growth: The rise and fall of corporate surfing brands” last year. Here’s the link again. Those of you who didn’t read this study ought to take the time.
We learn that the deal is expected to close on April 24th. In a strategic sense, despite the length of the document we don’t learn much that’s new. Some of the comments on possible synergies from the combination are interesting and there are some new facts/opinions we’ll get to. Let’s get started.