(Updates with Performance Sports' statement)
Oct 11 Brookfield Asset Management Inc
, Canada's largest alternative-asset manager, is
considering a bid for troubled hockey gear-maker Performance
Sports Group Ltd , Bloomberg reported, citing
people familiar with the matter.
Performance Sports' Toronto-listed shares which were
previously halted was trading up 8.6 pct at C$5.25, while its
U.S.-listed shares were up 10.6 pct at $3.97 in afternoon
The company said, as previously announced, it had formed a
special committee with the assistance of its financial adviser
Centerview Partners LLC, and is continuing to review and
evaluate strategic alternatives.
Performance Sports said on Tuesday it along with Centerview
had discussions with certain interested parties and
stakeholders, but no agreement has been reached with a third
Brookfield shares were down 1.3 percent at C$46.64 in
Brookfield raised its stake to 13.2 percent in Performance
Sports in September after having said it would push for a
restructuring and a possible sale.
The asset manager is Performance Sports' second largest
shareholder after Sagard Capital Partners Management Corp,
according to Thomson Reuters data.
The former chairman of Performance Sports, Graeme Roustan,
told Reuters in August that he had hired investment banks
Jefferies Group LLC and Canaccord Genuity to explore a bid.
Performance Sports Group, which said in August that it may
default on its loans due to a delay in filing its annual report,
had Centerview Partners Holdings LLC to help negotiate with its
The company, which has been delaying its annual report
citing internal investigation over its accounting, said it was
the subject of inquiries by U.S. and Canadian securities
Performance Sports, which has a market value of C$221.5
million, is also under investigation by the U.S. Securities and
Exchange Commission and faces a shareholder class action
The company agreed in August to an extension to file its
annual and first quarter results by Oct. 28.
Should the company file for creditor protection after that
date, former chairman Graeme Roustan is said to be seeking
financial backing to launch a bid for Performance Sports'
roughly $440 million in debt, and then take control of the
company through a restructuring, Bloomberg reported. (bloom.bg/2echMAm)
Brookfield declined to comment.
(Reporting by Anet Josline Pinto and Vishaka George in