Gildan Activewear holder Browning West says Board ‘reconstitution’ needed

Browning West, a long-term shareholder of Gildan Activewea and beneficially owns approximately 5.0% of the Company’s outstanding shares, today issued the below statement regarding Gildan’s confirmation that it has initiated a sale process. “Since the onset of our campaign, we have maintained that Gildan is a high-quality business with significant latent earnings power and strong value creation potential under the right Board and management. We are naturally concerned that the Board has initiated a sale process in order to avoid accountability following continuous and growing support for Browning West’s calls for significant Board reconstitution. Based on unsolicited feedback we have received from fellow shareholders, we believe that the Company’s owners would be dismayed at the rumored $42 USD per share indication from a potential buyer, which effectively represents no premium. To put this low price in context, if Glenn Chamandy had not been terminated and the stock had simply performed in line with the most relevant index, it would be worth approximately $42 USD per share today. We believe that the stock will recover to at least this level after our experienced and credible slate is elected in May, and it could, in our view, be worth multiples of that level over the long term.