Billabong International Ltd (ASX: BBG) saw its stock price moving up 22% on December 01, 2017 with the group confirming to receive a confidential, indicative and non-binding proposal from Boardriders (Quiksilver, an American retail sporting company) which aims to acquire all of the BBG shares at a price of $1.00 cash per share. Further, the proposal values the company at about $200 million.

As the proposal is subject to a number of conditions including due diligence, securing committed financing, a unanimous recommendation from the board, and entry into a definitive scheme implementation agreement between the parties that would be further subject to shareholder and court approvals; there is no certainty on establishment of a formal deal. Thus, BBG has asked its shareholders to take no action in response to the indicative proposal. The group has appointed Goldman Sachs and Allens as financial advisor and legal advisor, respectively.

Meanwhile, 2017 has been a year of transformation for the group with EBITDA of $51.1 million, up 2.8% on a constant currency basis, but underperforming the guidance by less than a million dollars. However, the group still reported a Net Loss After Tax of $77.1 million. BBG now expects the FY18 EBITDA (excluding significant items) to exceed the FY17 EBITDA subject to reasonable trading conditions and currency markets remaining relatively stable.
 

Market Share (Source: Company Reports)
 
BBG stock which fell 39% this year to date, stormed higher by 22% in last one month (as at November 30, 2017).

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