Guess Shares Surge 26% After WHP Global’s $13-Per-Share Buyout Proposal

Guess? (GES, Financials) shares jumped 25.6% to $12.19 on Monday after the company announced that its board received a non-binding buyout proposal from WHP Global to acquire the company for $13.00 per share in cash.

Shares owned by current members Paul Marciano, Maurice Marciano, and Carlos Alberini are excluded from the sale.According to the plan, stock, outside loan finance, and reinvestment from the excluded shareholders would all help to pay the purchase. The offer, according to the corporation, implies Guess? would keep running without major operational or strategic modification.Guess? has responded by establishing a Special Committee made of independent directors to evaluate the offer. Working with financial and legal counselors, the committee will decide on the best course of action for owners. The firm issued a warning: there is no guarantee the deal would be completed or a final agreement would be reached.Approximate guess further pointed out that until the Special Committee finishes its assessment, it would not provide any more comments on the topic. At this point, there is no action needed of the shareholders.WHP Global and Guess have a current commercial partnership. The businesses teamed up in April 2024 to purchase the operational and intellectual property of the fashion brand Rag & Bone. Guess presently runs rag & bone boutiques in the U.S. and the U.K. in addition to the department store and e-commerce platform distribution.Guess directly oversaw 1,057 retail shops in Europe, the Americas, and Asia as of November 2024. Operating an extra 541 stores, its partners and distributors helped the firm to be present in over 100 countries.

This article first appeared on GuruFocus.