Billabong shareholders back takeover

The offer was backed by the Billabong board and by founder Gordon Merchant, as well as major shareholders Ryder Capital and Adam Smith Asset Management. Picture /Getty Images

Billabong shareholders have overwhelmingly approved a takeover by Boardriders after the owner of Quiksilver and DC Shoes increased its offer at the last minute.

Boardriders lifted its offer by A5c to A$1.05 per share just before the scheme meeting, and 95.45 per cent of votes were cast in favour of the improved cash bid.

The successful offer represented a 34.6 per cent premium on Billabong's closing price the day before Boardrider's proposal was first announced in January.

Boardriders chief executive Dave Tanner said the deal offered the best value for shareholders, employees, vendors and customers.

"We are pleased to see that the Billabong shareholders recognised this value, and have approved the proposed acquisition," Tanner said.

"We have now cleared a significant milestone, and we are one step closer to creating the world's leading action sports company."

Boardriders is majority-owned by US investment firm Oaktree Capital, which already held a 19.3 per cent stake in Billabong.

The offer was backed by the Billabong board and by founder Gordon Merchant, as well as major shareholders Ryder Capital and Adam Smith Asset Management.

After announcing a A$18.4 million ($19.5m) half-year loss in February, Billabong warned that rejection of offer would force more equity raising or asset sales to cut A$138.6m of debt before its loans matured.

Boardriders' chief executive David Tanner said there would be "blood on the hands" of anyone that blocked the proposal.

The company will now present the results of the vote to the Federal Court on April 6, so it can proceed with the takeover.