New era for Billabong as shareholders vote for Boardriders’ takeover of the company

BILLABONG founder Gordon Merchant will pocket $25.6 million after he and fellow shareholders overwhelming backed an increased takeover bid from US-based Boardriders yesterday.

Billabong founder Gordon Merchant.

BILLABONG founder Gordon Merchant will pocket $25.6 million after he and fellow shareholders overwhelming backed an increased takeover bid from US-based Boardriders yesterday.

Mr Merchant, who launched one of Australia’s iconic brands from his Gold Coast home in 1973, did not attend yesterday’s shareholders meeting at the company’s head office and was reportedly overseas.

It echoed the day the company first listed on the Australian Securities Exchange in August, 2000, when he famously spent the day surfing as his personal net wealth skyrocketed.

At the end of the first day of trade Mr Merchant’s then 22.5 per cent stake in Billabong was worth $135 million, while he also had collected $129 million when he sold up to 28 per cent of the company into the float.

At the time of yesterday’s deal he had a 12.3 per cent stake, following share consolidations and capital raisings over the years and was ranked as the company’s third largest shareholder.

His almost 24.4 million shares will garner him $25.6 million after Boardriders bumped up its offer price by 5¢ to $1.05 just prior to yesterday’s meeting.

Boardriders, which also owns rival surf brand Quiksilver, is controlled by private equity giant Oaktree. Boardriders made the move to secure Billabong’s takeover in the wake of speculation the proposal may not succeed. More than 95 per cent of votes cast were in favour of the bid. After the vote, Billabong chairman Ian Pollard paid tribute to Mr Merchant, who has avoided the spotlight even as the company faced pressure in a challenging retail environment.

“He is one of the very few Australian business figures who actually built a global brand from the ground up – it’s an enormous legacy,” Mr Pollard said.

CEO Neil Fiske said Billabong would be in “a far better position to compete globally” under its new ownership.

And Boardriders CEO Dave Tanner said it was a significant milestone in the company’s history.

“We look forward to uniting the Billabong and Boardriders communities and building a foundation to better showcase and grow the action sports industry,” he said.

Yesterday, the fate of the 4000 ­global employees of Billabong was unclear. Billabong shares, which rose 13¢ to $1.04 yesterday, will cease trading on the ASX on April 9.