Pacific Brands shareholders have approved US apparel giant HanesBrands’ $1.1 billion takeover bid for the company during their meeting in Melbourne.
The Australian underwear company has applied to the Supreme Court of Victoria for approval of the scheme where a hearing was scheduled on June 27.
If approved, Pacific Brands shareholders who hold shares on the record dates will receive total cash payments of $1.15 per share, which includes the payment of a special dividend, the company said in a statement.
The 101-year-old Pacific Brands, which also owns Sheridan linen and Berlei underwear, has applied to the Australian Taxation Office requesting for a class ruling to confirm the key taxation implications of the scheme.
The ‘all-cash’ transaction is valued at approximately US$800 million and would give Pacific Brands shareholders AUD1.15 per share.
The acquisition would be Hanes’ sixth in the past three years and would add Australia and New Zealand to the list of countries where the company holds top market share position for underwear, intimate apparel or hosiery. The countries include the United States,Canada, Mexico, Brazil, France, Germany, Italy, Spain, and South Africa.
Pacific Brands’ last day of trading on ASX and NZX is on June 28.
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