Gates Announces Pricing Of Secondary Offering Of 17.5M Ordinary Shares
Portfolio Pulse from Benzinga Newsdesk
Gates Industrial Corporation plc (GTES) announced the pricing of a secondary offering of 17.5 million shares by Blackstone Inc. affiliated stockholders, with an option for underwriters to buy an additional 2.625 million shares. The offering is set to close on February 16, 2024. Gates will not offer any shares or receive proceeds from this offering. Citigroup, Goldman Sachs, and Jefferies are the lead managers. Gates also plans to repurchase $50 million of its shares at the offering price, conditioned on the offering's close. Some directors expressed interest in buying approximately 1.05 million shares.
February 13, 2024 | 2:16 pm
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POSITIVE IMPACT
Gates Industrial's secondary offering and subsequent share repurchase plan could signal confidence to investors, potentially stabilizing or boosting its stock price in the short term.
The secondary offering does not dilute current shareholders since Gates is not issuing new shares. The share repurchase plan could be seen as a positive signal, indicating that the company believes its stock is undervalued. This could lead to a short-term positive impact on the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Blackstone Inc., as the selling stockholder, is participating in the secondary offering of Gates Industrial shares, which could impact its investment portfolio's value depending on the offering's success.
As the selling stockholder, Blackstone's immediate financial impact depends on the success of the offering and the subsequent market reaction. However, the direct short-term impact on Blackstone's stock price may be limited, given the diversified nature of its investment portfolio.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60