Gildan CEO to Sell 28 Percent of Shares in Company
The CEO of apparel supplier Gildan Activewear is poised to sell off a significant portion of his shares in the Canadian company. The company announced last week that chief executive and president Glenn Chamandy has entered into a pre-arranged share disposition plan to sell up to 28 percent of his stock over a two-year period beginning in December.
According to the company, Chamandy will sell up to 2.75 million of his 9.7 million common shares of Gildan beginning on December 17, 2012. The sale is contingent upon the release of Gildan Activewear's release of its end-of-year numbers and 2013 earning guidance.
During the financial crisis in 2008, Chamandy invested $23 million of his own money to buy 2.6 million shares in the company as a sign of faith in the business. At the time of that investment, Gildan Activewear's stock was trading as low as $6.85 a share. Today, the company's shares are valued at over $30 each, and Chamandy stands to earn up to $80 million.
Even with the sale, Chamandy will remain one of the largest shareholders in the company with 7 million shares, or 5.7 percent of all company stock.
"Mr. Chamandy's investment in Gildan will continue to comprise the majority of his personal net worth and he has reiterated his personal commitment to continuing to lead Gildan's growth strategy, as well as his confidence in the future prospects for the company," according to a statement issued by the company.
Gildan has seen a significant amount of activity in the last year. In December, the company announced its first quarterly loss in a decade, which saw stock prices drop 30 percent. This was followed by further loses in the second half of 2012. Although there were net losses due to fluctuating cotton prices and market volatility, company sales increased during this period. In May, Gildan Activewear announced the acquisition of promotional apparel supplier Anvil Knitwear for $88 million, which triggered an uptick in the company's value. As of noon today, the company's stock was trading at $30.27 a share.
For more information, visit www.gildan.com.