Gazal shares surge
SHARES in Australian fashion house Gazal have surged after it announced it was in talks with a potential suitor.
In a statement to investors yesterday, the company said that it was in discussions with US-based PVH on “the potential for a proposal” to privatise Gazal, taking it off the Australian Securities Exchange.
Based in New York, PVH – previously called Phillips-Van Heusen – is a partner with Gazal in a joint venture that distributes brands including Calvin Klein, Tommy Hilfiger and Van Heusen.
“The discussions may not continue and, if they do, might not result in a proposal,” Gazal’s statement said.
“If a proposal is made, it may not result in a transaction.”
Gazal shares surged on the revelation, closing up 13 per cent at $4.75.
Based in Sydney, the company has a market value of about $200 million and is controlled by retailers Michael and David Gazal.
It is due to release its firsthalf results this morning.
Last month, the company said that based on unaudited results, earnings before interest, tax, depreciation and amortisation clocked in at $9.4 million for its first half – the six months to August 4, compared with $5.5 million in the first half a year earlier.