Gates Industrial drops as Blackstone's share sale priced

Gates Industrial

08/12/2023 13:52

** Gates Industrial's  GTES.N  shares down 7.7% at $11.31
premarket after overnight secondary offering priced
    ** Industrial machinery firm announces PE giant Blackstone
 BX.N  sold 15 mln shares
    ** Offering priced at $11.25, 8.2% discount to stock's last
close, according to sources
    ** Blackstone's stake reduced by about 6% to ~37%, or ~98.5
mln shares, per the SEC filing. Gates has ~264.1 mln shares
outstanding
    ** Citigroup, Goldman and Jefferies lead bookrunners for
offering
    ** On Nov 3, Gates posted Q3 adj EPS beat of 35 cents and
slight rev miss of $837 mln, per LSEG, and raised FY adj EPS
guidance to $1.22-$1.28
    ** Through Thurs close, GTES shares rose ~10% since Q3
report and are up ~7% YTD
    ** Avg rating among 9 analysts is "buy" and their median PT
on stock is $14, per LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))