GATES ANNOUNCES PRICING OF SECONDARY OFFERING OF 11,635,224 ORDINARY SHARES

Rhea-AI Summary

Gates Industrial announced the pricing of a secondary offering of 11,635,224 ordinary shares by selling stockholders affiliated with Blackstone Inc. The shares are priced at $19.40 per share, with the offering expected to close on November 5, 2024. Gates will not receive any proceeds from this offering as it's not offering any shares directly. Goldman Sachs & Co is serving as the book-running manager for the offering.

Positive

• None.

Negative

• Large secondary offering of 11.6M shares could create selling pressure
• Blackstone's stock sale signals potential reduced commitment to Gates
• No proceeds will benefit the company as it's a secondary offering

Insights

Financial Analyst

The secondary offering of 11.6 million shares by Blackstone at $19.40 per share represents a significant market transaction worth approximately $225.7 million. This move by Blackstone to reduce their stake signals a strategic exit, though the exact post-transaction ownership percentage isn't disclosed. The pricing shows market confidence, coming in close to recent trading levels.

The transaction's size and pricing structure suggest strong institutional interest. While this offering may create temporary selling pressure, the involvement of Goldman Sachs as the book-runner indicates professional execution and likely pre-arranged placements with institutional investors. For existing shareholders, while this creates no immediate fundamental change to Gates' operations or balance sheet, it does improve float and trading liquidity.

DENVER, Oct. 31, 2024 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES, "Gates" or the "Company") announced today the pricing of the previously announced secondary offering of 11,635,224 ordinary shares (the "Offering") by certain selling stockholders affiliated with Blackstone Inc. at a price to the public of $19.40 per share. The Offering is expected to close on November 5, 2024, subject to customary closing conditions.

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. Goldman Sachs & Co. LLC is serving as the book-running manager for 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, the underwriter or any dealer participating in the Offering will arrange to send you the prospectus if you request it by contacting Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com.

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 manufacturers ("OEM") 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 Americas; Europe, Middle East & Africa; Greater China; and East Asia & India.

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

What is the price per share for Gates (GTES) secondary offering announced on October 31, 2024?

The secondary offering was priced at $19.40 per share.

How many shares are being offered in Gates Industrial's (GTES) October 2024 secondary offering?

The secondary offering consists of 11,635,224 ordinary shares.

When is Gates Industrial's (GTES) secondary offering expected to close?

The offering is expected to close on November 5, 2024, subject to customary closing conditions.

Who is selling shares in Gates Industrial's (GTES) secondary offering?

The selling stockholders are affiliated with Blackstone Inc.