April 24th, 2024

Turtle Creek calls on Gildan to hold AGM and vote on directors without delay

By The Canadian Press on March 25, 2024.

The Gildan logo is seen outside their offices in Montreal, Monday, Dec. 11, 2023. Another long-time investor in Gildan Activewear Inc. says it does not trust the company's current board to oversee a sale process and called on it to hold its annual meeting without delay to allow shareholders to elect new directors. THE CANADIAN PRESS/Christinne Muschi

TORONTO – Another longtime investor in Gildan Activewear Inc. says it does not trust the company’s current board to oversee a sale process and called on it to hold its annual meeting without delay to allow shareholders to elect new directors.

The review of options by the company comes as Gildan has been embroiled in a fight over who should lead the firm since it announced late last year that co-founder and then-chief executive Glenn Chamandy would be replaced as CEO by Vince Tyra.

In a letter to the board, Turtle Creek Asset Management Inc. says the sale process comes at a bad time with the company in the midst of a boardroom fight.

It says the current board does not have a mandate, nor the confidence of Gildan shareholders, to run a process that could result in the sale of the company.

Turtle Creek estimates that Gildan has a value of over US$60 per share, well above where it has been trading in recent days.

U.S. investor Browning West, with the support of Gildan’s largest shareholder Jarislowsky Fraser, is seeking to replace eight members of the Gildan board in a move to reinstate Chamandy.

This report by The Canadian Press was first published March 25, 2024.

Companies in this story: (TSX:GIL)

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