Australian surf wear brand Billabong has received a takeover bid from rival Quiksilver which values the company at around $150m (£110m).
It could be a lifeline for the troubled firm, which has only turned a profit in one of the last five years.
Billabong suffered a $58m (£43m) wipeout this year, which was triple its loss for 2016.
The company sells clothing under eight different brands and sponsors surf events around the world.
In an announcement to the Australian Stock Exchange, Billabong said it received a non-binding offer from Boardriders to acquire all of the company’s shares for $0.76 each.
Boardriders was formerly known as Quiksilver and still sells clothing under its original name.
Billabong’s shares shot up 23% on news of the offer. The offer is subject to a number of conditions including unanimous approval by Billabong’s board and due diligence.
In 2012, Billabong rejected a takeover bid worth more than four times the current offer.
Quiksilver was founded in Australia in 1969, but moved to the US, where it listed in 1986.
After declaring bankruptcy in 2015, it restructured and became a private company with the help of private equity firm Oaktree Capital.
Oaktree Capital, which became Quiksilver’s majority shareholder when the company emerged from bankruptcy, also owns a 19% stake in Billabong.