Former Performance Sports chairman weighs taking company private
By John Tilak and Euan Rocha
TORONTO (Reuters) - The former chairman of Performance Sports Group Ltd PSG.TO, Graeme Roustan, said he is looking to take the company private, potentially at a premium to the current share price, if he does not see a reversal in the its retail strategy and a replacement of the chief executive.
The other option he is evaluating is a proxy battle to get on the company's board. Roustan is waiting for a response from the board after writing to them before Christmas, calling for the ouster of CEO Kevin Davis.
Roustan expressed frustration with the company's plans, announced about a year ago, to open its own retail stores. Performance Sports sells to more than 5,000 retailers in Canada, the United States and parts of Europe.
"Their retail strategy is essentially a competitive push against their existing customers. It's counterproductive," Roustan said in an interview on Saturday.
A Performance Sports spokesman was not immediately reachable for comment on the possible move to take the company private, first reported by Bloomberg TV on Friday.
Roustan said he would launch a tender offer to take the company private and that would be done through private capital.
"I wouldn't discuss what the tender offer would be at this point, but typically it's standard to offer premium to the most recent closing price," he said.
He plans to assemble a group of investors, which could include some major current shareholders. Continued...