Why Is Clothing Firm Guess Stock Surging Today?

Shares of clothing company Guess?, Inc. GES are trading higher in premarket on Monday.

The company has announced that its Board of Directors has received a non-binding proposal from WHP Global, through its affiliate WHP Investments, LLC, for the acquisition of all outstanding shares of Guess? at a price of $13.00 per share in cash.

The offer represents a premium of 34% to the last closing price of $9.70.

The proposal excludes shares held by certain existing shareholders, including Paul Marciano, Maurice Marciano, and Carlos Alberini.

The company has created a Special Committee of independent directors to assess the proposal with the help of financial and legal advisors.

The deal is expected to be financed with a combination of equity, third-party debt financing, and rollover or reinvestment by the Proposed Rollover Shareholders.

Also Read: AstraZeneca Seals Deal For EsoBiotec To Advance Cell Therapy: Details

The proposal assumes that Guess? will continue its operations as usual, with no significant changes to its strategic or operational position.

The Special Committee’s review aims to determine the best course of action for the company and its shareholders.

Guess? has indicated that it will provide further updates once the Special Committee has concluded its evaluation.

Back in April 2024, Guess? had entered into a partnership with WHP to acquire the intellectual property and operational assets of the New York-based fashion brand rag & bone.

Guess? now directly operates rag & bone stores in the U.S. and the U.K., as well as offering the brand through high-end boutiques, department stores, and global e-commerce platforms.

Price Action: GES shares traded higher by 25.4% at $12.15 in premarket at last check Monday.

Image via Shutterstock.

Read Next: