Gildan Activewear (NYSE:GIL) stock is on the rise Wednesday as investors react to the apparel company confirming reports that it’s considering a sale of the business.
According to the latest reports, private equity firm Sycamore Partners is considering a bid for Gildan Activewear. This comes as activist investors have been fighting with the Board of Directors over the future of the company.
Gildan Activewear responded to these reports by confirming it has received a confidential non-binding expression of interest to acquire the company. This saw the board create a “special committee” to evaluate the offer.
In addition to this, Gildan Activewear is also seeking offers from other firms. The company notes that it has spoken to several with an interest in a potential friendly transaction to acquire GIL.
What This Means for GIL Stock
Any transaction is likely to take Gildan Activewear private. If that happens, the company’s shares will no longer trade on public markets. Doing so could reduce costs and settle some of its internal disputes.
GIL stock is up 3.9% as of Wednesday morning with more than 1.2 million shares traded. The company’s daily average trading volume is below that at roughly 832,000 shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
