UPDATE 4-Gildan Activewear fields offers from multiple bidders for potential sale
(Adds Sycamore bid report in para 11)
March 19 (Reuters) - Gildan Activewear said on Tuesday the board has decided to put the Canadian clothing maker up for sale and is in talks with multiple bidders.
"The Special Committee determined that it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction," Simon Beauchemin, Gildan's spokesperson, told Reuters.
Gildan had received a takeover approach from a potential buyer over the last four weeks and the company mandated investment banks RBC Capital Markets and Goldman Sachs Group to look for additional bidders, the Globe and Mail reported earlier in the day citing two sources familiar with the matter.
Beauchemin said the special committee, with the help of financial advisors, has reached out to a few reputable potential partners. The spokesperson added some have shown interest in exploring a potential friendly transaction with Gildan.
However, Beauchemin noted there can be no assurance any transaction will result from these discussions.
Gildan's listings on the New York and Toronto stock exchanges were halted. Its U.S.-listed stock was last up 10% before the trading halt.
The Canadian apparel maker had a market capitalisation of C$7.72 billion ($5.69 billion), as of last close.
Gildan has been embroiled in a battle between its top stockholders, such as investment firm Browning West, and the board, which fired co-founder and CEO Glenn Chamandy in December.
In late January, Gildan said it would hold an annual and special shareholder meeting on May 28 amid the ongoing dispute to replace a majority of its board members and reinstate Glen Chamandy as CEO.
Private equity firm Sycamore Partners is exploring an offer for Gildan, according to a Bloomberg News report.
Gildan and Sycamore Partners did not immediately respond to Reuters' requests for comment on the Bloomberg report.
($1 = 1.3565 Canadian dollars) (Reporting by Juveria Tabassum, Annett Mary Manoj in Bengaluru and Anirban Sen in New York; Editing by Krishna Chandra Eluri)
