Guess? (NYSE:GES) shares surged more than 25% after the fashion brand announced it had received a go-private buyout offer from WHP Global at $13 per share.
The offer represents a 34% premium to the closing price of Guess? shares on Friday.
The company said the offer excludes shares held by its co-founders Paul Marciano and Maurice Marciano and CEO Carlos Alberini, who own about 43% of the business.
The proposed transaction would be financed through a combination of equity and third-party debt financing, as well as rollover or reinvestment by the existing shareholders.
WHP Global's proposal assumes that Guess? will continue to operate in its ordinary course of business without any material changes to its strategic and operational position.
In response to this offer, Guess? has formed a Special Committee of independent and disinterested directors to evaluate the proposal.
WHP Global manages a portfolio of consumer brands including Anne Klein, Toys R Us, and Vera Wang.
Shares of Guess? added 26.8% at $12.30 in the early afternoon on Monday.