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)