04:53 PM EDT, 03/19/2024 (MT Newswires) -- Gildan Activewear ( GIL ) was last seen up 2.1% in after-hours New York trading after the company on Tuesday confirmed news reports it is considering a sale, saying its board has formed a special committee to evaluate offers following "a non-binding expression of interest to acquire Gildan".

The clothing manufacturer, which is embroiled in a proxy battle with some of its largest shareholders following the December firing of long-serving chief executive Glenn Chamandy, said "it determined 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".

"The Special Committee, with the assistance of its financial advisors, conducted targeted outreach to a small number of reputable potential counterparties. Several of these counterparties expressed an interest in considering a potential friendly transaction with Gildan," the board said in a release.

The company's shares rose 11% prior to being halted after the Globe & Mail newspaper reported the potential sale.

Chamandy was fired from his position last year without explanation, though the board later said it took the step because it allegedly found him to be disengaged from the role and distracted by outside interests. Chamandy disputes those allegations.

Shareholder Browning West, which holds about a 5% stake in Gildan, is leading a group of other shareholders in a proxy battle to seat eight directors at the company's May 28 annual meeting.

Gildan shares were last seen up US$0.79 to US$38.01 in after-hours trading after a halt to US trading was lifted. They last traded up C$4.96 to C$50.71 on the Toronto Stock Exchange prior the mid-afternoon trading halt.