Canadian clothes maker Gildan Activewear stated on Tuesday that its board has determined to place the corporate up on the market following a evaluation by a particular committee.
The embattled Montreal-based firm says it obtained a non-binding expression of curiosity from a possible purchaser that it didn’t identify.
It mandated funding banks RBC Capital Markets and Goldman Sachs Group to search for extra bidders, based on a report by The Globe and Mail, citing two sources conversant in the matter.
“The particular committee decided that it was in keeping with its fiduciary duties and in the perfect pursuits of Gildan to contact different potential bidders with a view to maximizing the worth of any potential transaction,” an organization spokesperson stated.
CBC Information has reached out to the corporate for additional info.
Gildan has been embroiled in a battle between its prime stockholders, equivalent to funding agency Browning West, and the board, which fired co-founder and then-CEO Glenn Chamandy in December and changed him with Vince Tyra.
In late January, Gildan stated it will maintain an annual and particular shareholder assembly on Might 28 amid the continuing dispute to interchange a majority of its board members and re-instate Chamandy as CEO.
Whereas Gildan’s executives claimed Chamandy had no credible long-term technique and had misplaced the board’s belief, a gaggle of the corporate’s shareholders insists he was the superior chief and have known as for his return.
Gildan’s listings on the New York and Toronto inventory exchanges had been halted. Its U.S.-listed inventory was final up 10 per cent earlier than the buying and selling halt.