GATES ANNOUNCES PRICING OF SECONDARY OFFERING OF 20,000,000 ORDINARY SHARES
Rhea-AI Summary
Gates Industrial plc (NYSE: GTES) has announced the pricing of a secondary offering of 20,000,000 ordinary shares by certain selling stockholders affiliated with Blackstone Inc. The underwriters have a 30-day option to purchase up to 3,000,000 additional shares. The offering is expected to close on August 21, 2024. Gates will not receive any proceeds from the sale.
In connection with its existing share repurchase program, Gates has entered into a contract to repurchase $125 million of ordinary shares at the same price paid by the underwriters, totaling 7,539,203 shares. This repurchase is conditioned upon the closing of the offering. Additionally, one of Gates' directors has expressed interest in purchasing shares in the offering.
Positive
- Gates is repurchasing $125 million worth of shares, potentially indicating confidence in the company's value
- A company director has shown interest in purchasing shares, suggesting insider confidence
Negative
- Selling stockholders are offloading a significant number of shares, which could potentially dilute existing shareholders' ownership
- The company will not receive any proceeds from the sale of shares in the offering
News Market Reaction – GTES
On the day this news was published, GTES gained 1.57%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Gates is not offering any ordinary shares in the Offering and will not receive any proceeds from the sale of ordinary shares in the Offering. Citigroup, Goldman Sachs & Co. LLC, and Jefferies are serving as the joint lead book-running managers of, and as representatives of the underwriters for, the Offering. BMO Capital Markets, BTIG, Evercore ISI, Mizuho, Morgan Stanley, MUFG, PJT Partners, RBC Capital Markets, UBS Investment Bank and Santander are also serving as joint book-running managers for the Offering.
In addition, as previously announced, in connection with its existing share repurchase program, Gates has entered into a share repurchase contract with Citigroup Global Markets Inc. to repurchase
One of our directors has indicated an interest in purchasing ordinary shares in the Offering.
The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the "SEC") for the Offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the Offering. You may get these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, the Company, any underwriter or any dealer participating in the Offering will arrange to send you the prospectus if you request it by contacting Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Gates:
Gates is a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. Gates offers a broad portfolio of products to diverse replacement channel customers, and to original equipment ("first-fit") manufacturers as specified components. Gates participates in many sectors of the industrial and consumer markets. Our products play essential roles in a diverse range of applications across a wide variety of end markets ranging from harsh and hazardous industries to everyday consumer applications including virtually every form of transportation. Our products are sold in more than 130 countries across our four commercial regions: the
Forward‐Looking Statements and Information:
This press release contains forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements that are not historical facts. In some cases you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts," "intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Forward-looking statements are based on the Company's current expectations and actual results may differ materially. Other risks and uncertainties are more fully described in the section entitled "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2023, as filed with the SEC, as such factors may be updated from time to time in the Company's periodic filings with the SEC. Investors are urged to consider carefully the disclosure in our filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Gates undertakes no obligation to update or supplement any forward-looking statements as a result of new information, future events or otherwise, except as required by law.
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SOURCE Gates Industrial Corporation plc
FAQ
How many shares are being offered in Gates Industrial 's (GTES) secondary offering?
When is the expected closing date for Gates Industrial 's (GTES) secondary offering?
How many shares is Gates Industrial (GTES) repurchasing in connection with the offering?
Will Gates Industrial (GTES) receive any proceeds from the secondary offering?
