FX.co ★ Gates Industrial Announces Secondary Offering Of 17.5 Mln Shares

Gates Industrial Corp. plc (GTES), a premier manufacturer of industrial machinery, announced on Tuesday the initiation of a secondary offering of 17.5 million shares. This offering is being made by certain shareholders affiliated with Blackstone Group.

In addition, these shareholders have provided underwriters with an extended 30-day option to purchase up to an additional 2.625 million shares. The company confirmed that the offering is projected to close on February 16th.

Furthermore, Gates Industrial Corp. has sealed an agreement with Citigroup Global Markets Inc. to repurchase shares worth $150 million. The repurchase price will be equivalent to the price paid by the underwriters for their shares in the offering.

As of now, Gates Industrial Corp. shares are trading at $12.52 on the New York Stock Exchange, reflecting a decrease of $2.19 percent.