Shares in Sydney clothing distributor and maker, Gazal Corporation jumped more than 13% yesterday to record levels after it confirmed media reports that it was talking to US group, PVH Corp and a major shareholder about being privatised.
PVH is a 50:50 partner with Gazal in the PVH Brands Australia joint venture and Gazal said yesterday that it “is in regular discussions with PVH in relation to the JV business.”
“Gazal is in preliminary discussions with PVH around the potential for a proposal by PVH for a privatisation of Gazal.
“The discussions are at the very earliest stages. The discussions may not continue and, if they do, might not result in a proposal. If a proposal is made, it may not result in a transaction.
“The statement in the SMH CBD column that PVH is “about to make a move” on Gazal is not correct.
“Gazal will keep the market informed of any material developments as required by the ASX rules, the statement ended.
The shares ended up at $4.75 which values the company at close to $200 million, more than double the value at the start of this year when the shares were trading around $1.92.