Gildan says Browning West illegally acquired stake to take control of Board & reinstall former CEO

Gildan Activewear Inc. (GIL, GIL.TO) said that
Browning West LP accumulated shares in violation of the United States
Hart-Scott-Rodino Antitrust Improvements Act of 1976 as part of its
misguided campaign to reinstall Glenn Chamandy as chief executive
officer of Gildan.

Under the Canada Business Corporations Act, shareholders are entitled
to requisition a special meeting of shareholders only if they hold
over 5 percent of a company’s shares. Browning West’s illegal share
acquisitions barely put it over this threshold, and on January 9,
2024, Browning West sought to requisition a special meeting to take
control of the Company and its Board by removing eight sitting
directors and appointing eight new directors hand-picked by Browning
West, including one of its co-founders and Chamandy, Gildan said in a
statement.

Gildan noted that it intends to explore all avenues to ensure that
shareholders are protected from Browning West’s illegal activity,
potentially including notifications to applicable regulators and
legal proceedings in the United States and Canada.

Responding to Gildan Activewear’s attempt to invalidate Browning
West’s requisition for a Special Meeting of Shareholders, Browning
West issued an open letter to fellow shareholders.

In the letter, Browning West alleged that Gildan’s most recent gambit
coincides with other troubling actions, including the initiation of a
campaign to intimidate and silence vocal shareholders.(AFP)