GTES - Gates declines 5.4% after registering shares for Blackstone

Gates Industrial ( NYSE: GTES ) fell 5.4% to $10.62 a share after filing for a possible sale of shares owned by private-equity firm Blackstone Group ( BX ).

The registration covers about 179 million shares, or 63% of those outstanding, in the maker of transmission belts and industrial equipment, according to a filing with the U.S. Securities and Exchange Commission.

Gates in 2018 entered into a registration rights agreement during its IPO that provides Blackstone with unlimited demand registrations and piggyback registration rights. The filing doesn’t necessarily denote that Blackstone is selling the shares.

Gates hit a 52-week low of $10.39 a share on July 14.

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