Canadian clothing maker Gildan Activewear said on Tuesday that its board has decided to put the company up for sale following a review by a special committee.
Gildan’s listings on the New York and Toronto stock exchanges were halted. Its U.S.-listed stock was last up 10 per cent before the trading halt.
The Globe and Mail had earlier reported on the news. Over the past four weeks, Gildan had received a takeover approach from a potential buyer and the company mandated investment banks RBC Capital Markets and Goldman Sachs Group to look for additional bidders, the report added, citing two sources familiar with the matter.
“The special committee determined that it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction,” a company spokesperson told Reuters.
The company has been embroiled in a battle between its top stockholders, such as investment firm Browning West, and the board, which fired co-founder and CEO Glenn Chamandy in December.
In late January, Gildan said it would hold an annual and special shareholder meeting on May 28 amid the ongoing dispute to replace a majority of its board members and re-instate Chamandy as CEO.
The company then said its board had constituted a special committee to look into the request for a special meeting by Browning West and agreed with the committee’s recommendation to set up the meeting.
The Canadian apparel maker had a market capitalization of $7.72 billion, as of last close.