Sports apparel seller Billabong International Ltd  confirmed on Friday it has received an indicative takeover proposal from Boardriders Inc, which values the company at about A$198 million ($150 million).

U.S.-based Boardriders, formerly known as Quiksilver, prices it offer at A$1 cash for each Billabong share, a 28.2 percent premium to Billabong’s Thursday’s closing price.

U.S. private equity firm Oaktree Capital Management LP holds 19 percent of the shares in Billabong and is one of Billabong’s two senior lenders. Funds managed by Oaktree also have a majority interest in Boardriders.

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

Billabong said its board had decided to grant due diligence access to Boardriders to enable it to put forward a formal proposal.

The company, whose brands include RVCA, Element, Von Zipper and Honolua Surf Company, has appointed Goldman Sachs as its financial advisor and Allens as its legal advisor. .

($1 = 1.3238 Australian dollars)