Canadian investor Stephen Jarislowsky has expressed support for Gildan Activewear’s former CEO and criticized the company’s proposed acquisition by private equity firm Coliseum Capital Management..
In a letter to Gildan’s board of directors, Jarislowsky, who owns 8.6% of the company’s shares, expressed his disagreement with the proposed deal, which values Gildan at $1.8 billion. He believes the offer undervalues the company and is not in the best interests of shareholders..
Jarislowsky also defended former CEO Glenn Chamandy, who was abruptly fired by the board last week. He claimed that Chamandy was a successful leader who had transformed Gildan into a global leader in the apparel industry. He further stated that Chamandy’s dismissal was unjustified and questioned the board’s decision-making process..
Moreover, Jarislowsky criticized the board’s decision to replace Chamandy with interim CEO Laurence Sellyn, whom he views as lacking the necessary experience to lead Gildan. He argued that Sellyn’s appointment was a sign of the board’s lack of confidence in the company’s future prospects..
To counter the proposed buyout, Jarislowsky urged the board to consider alternative options, such as conducting a strategic review of the company to attract competing offers. He also suggested that the board consider a share buyback program to return value to shareholders..
Jarislowsky’s stance against the proposed deal and his criticism of the board’s actions have added another layer of complexity to the already tumultuous situation at Gildan. The company’s future is uncertain, and it remains to be seen how the board will respond to Jarislowsky’s demands..
Shareholders are closely monitoring the situation and waiting for further developments. The outcome of this saga will have significant implications for Gildan’s future direction and the interests of its stakeholders..
