Billabong receives takeover bid from US rival Boardriders

Australian surf brand Billabong has received a takeover bid from US rival Boardriders - formerly Quiksilver - which values the group at around AUD198m ($150m).

Boardriders has offered $1 in cash for each Billabong share.

Funds managed by US private equity firm Oaktree Capital have a majority interest in Boardriders, while Oaktree already owns 19% of the shares in Billabong and is one of its two senior lenders.

The indicative proposal is subject to a number of conditions, including due diligence to Boardriders' satisfaction, securing committed financing and unanimous recommendation from the Billabong board.

Billabong said that after consideration by the board and the company's advisers, it has decided to grant due diligence access to Boardriders to enable it to put a formal proposal to the group. That process is likely to several weeks.

"The Billabong board notes that there is no certainty this process or the indicative proposal will result in an offer for Billabong. Billabong shareholders do not need to take any action in response to the Indicative proposal at this time. The company will update shareholders, in accordance with the company's continuous disclosure obligations, in due course."

Billabong has appointed Goldman Sachs as its financial advisor.

Billabong shares shot up 22% to AUD0.95 on the news.