- Gates Industrial Corp PLC (NYSE:GTES) announced a secondary offering of 5 million of Gates' ordinary shares, with certain selling stockholders affiliated with Blackstone Inc.
- Underwriter granted a 30-day option to purchase up to 750,000 additional ordinary shares.
- Gates is not offering any ordinary shares in the offering and will not receive any proceeds from the sale of ordinary shares in this offering.
- Additionally, Gates entered into a share repurchase contract with Citigroup Global Markets Inc. to repurchase up to 8 million ordinary shares at a price per share equal to the price paid by the underwriter in the offering.
- Gates intends to fund the share repurchase with cash on hand and borrowings under its revolving credit agreement.
- GTES held cash and cash equivalents of $658.2 million as of January 1, 2022.
- Price Action: GTES shares are trading lower by 4.41% at $15.40 during the post-market session on Thursday.
