Newspaper article The Canadian Press

Gildan CEO to Pocket Profit by Selling Large Stake in Apparel Company

Newspaper article The Canadian Press

Gildan CEO to Pocket Profit by Selling Large Stake in Apparel Company

Article excerpt

Gildan's CEO selling big chunk of shares

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MONTREAL - Gildan Activewear's founder could earn more than $80 million, including a sizable profit, after deciding to sell a considerable chunk of his stake in the apparel company for the second time in five years.

Chief executive Glenn Chamandy plans to sell up to 2.75 million shares, or 28 per cent of his 9.8 million shares.

The shares being sold include 2.6 million that he purchased late in 2008 and early 2009 for between $6.85 and $11.69 a piece after concerns about the economy and the restructuring of a key client caused the stock price to plummet.

On the Toronto Stock Exchange, Gildan (TSX:GIL) shares plunged Wednesday after news of the planned divestiture was released. They closed at $30.70, down $1.14, or 3.58 per cent in trading.

Chamandy repurchased the block of shares to help support the stock price and show faith in the company at a time when the economy was weak, said Laurence Sellyn, chief financial and administrative officer.

"Now that we are back on track and he's confident in the outlook for the company, he's selling those additional shares he bought and reverting back to his core economic position," he said in an interview because Chamandy was unavailable for comment.

The company founder initially sold 3.6 million shares in 2007 at an average price of $37 for diversification and estate planning purposes.

Sellyn acknowledged that his business partner will make a profit because he bought at a low point, as could have other investors.

Chamandy said he has entered into a pre-arranged share disposition plan under which a U.S. financial institution will sell the shares once Gildan issues its 2012 results and earnings guidance for 2013 in December.

Under U.S. and Canadian securities laws, company insiders can sell shares over a predetermined period of time and subject to predetermined volume and price parameters. …

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