Gates Industrial Stock Slips On Secondary Offering by Selling Stockholders

Gates Industrial Corp PLC 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.