Gant board recommends shareholders reject Procastor bid

07 Jan '08

2 min read

•The Board of Directors recommends shareholders not to accept the offer from Procastor.

•Strong belief in the company as a stand-alone alternative creating shareholder value through existing business model.

•Multiple growth opportunities expected to secure strong long term growth in profits and cash flow.

•New financial target stating that EBIT shall amount to at least SEK 450 million in 2010 (SEK 242 million in 2006) and increase at an average annual rate of at least 15 percent in the following five-year period.

•New dividend policy to distribute at least 75 per cent of net income to shareholders.

Statement from Lennart Björk, Chairman of the Board: “The Board of Directors believes strongly in the future development of Gant as a stand alone company. The current business model, using franchisees in the establishment of new and the development of existing markets, has proven itself again and again."

"Gant's track record in delivering profits, cash flow and shareholder returns, in combination with exciting growth prospects are the basis for our recommendation to shareholders to say no to Procastor's offer and support Gant as an independent company delivering value to all shareholders.”

GANT is a Swedish company marketing and developing an international lifestyle brand with origins in the casual apparel and lifestyle of the American East Coast, where the brand was established in 1949.

Today, GANT is sold in over 70 countries through more than 310 independent GANT stores and over 4,000 selected retailers. The collections comprise clothes for men, women and children. In addition, watches, footwear, eyewear, fragrance and home furnishings are licensed under the GANT brand. In 2006, brand sales amounted to SEK 6,200 million. The Gant share is traded on the OMX Nordic Exchange Stockholm since March 2006.

Gant Company AB

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