March 3rd, 2024

Gildan and Browning West fight over special shareholder meeting request

By The Canadian Press on January 22, 2024.

The Gildan Activewear Inc. logo is seen outside their offices in Montreal, Monday, Dec. 11, 2023. Gildan has accused a U.S. investment fund of breaking U.S. antitrust rules in increasing its stake in the company and raised concerns about its ability to request a special shareholder meeting to replace of majority of its board. THE CANADIAN PRESS/Christinne Muschi

MONTREAL – Gildan Activewear Inc. has accused a U.S. investment fund of breaking U.S. antitrust rules in increasing its stake in the company and raised concerns about its ability to request a special shareholder meeting to replace of majority of its board.

Browning West is seeking the meeting to replace eight of the company’s 11 board members including chair Donald Berg, and reinstate Gildan co-founder Glenn Chamandy as chief executive.

Gildan alleges the fund did not notify U.S. regulators and comply with a 30-day waiting period before it increased its stake in the company to the point where it could request the shareholder meeting.

Browning West says the company is seeking to invalidate its meeting request based on the false premise that it violated the U.S. Hart-Scott-Rodino Antitrust Improvements Act.

In a letter to shareholders, it said it poses no substantive antitrust concerns to any concerned authority and accused the Gildan board of trying to avoid holding the special meeting.

Gildan has been embroiled in a fight over who should lead the company since it announced late last year that Chamandy would be replaced as chief executive by Vince Tyra. Several Gildan shareholders, including the company’s largest, Jarislowsky Fraser, have sought to have Chamandy reinstated.

This report by The Canadian Press was first published Jan. 22, 2024.

Companies in this story: (TSX:GIL)

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