Gates Industrial (GTES) investor relations material

Executive summary

• Proposal to redomicile the parent holding company from England and Wales to Bermuda, aiming to enhance strategic flexibility, reduce regulatory burdens, and align governance with a predominantly U.S.-based shareholder base.

• The redomiciliation will be effected via a U.K. scheme of arrangement, requiring shareholder and court approval, with each shareholder receiving one New Gates Share for each existing share.

• The move is expected to streamline corporate actions, eliminate duplicative U.K./U.S. reporting, and generate annual cost savings of approximately $4–5 million.

• No material impact is anticipated on day-to-day operations, management, or employee base; the change is not tax-driven and is expected to be tax-free for U.S. holders.

Voting matters and shareholder proposals

• Shareholders are asked to approve the scheme of arrangement, reduction of capital, issuance of new shares to New Gates, and amendments to articles to ensure all shares are subject to the scheme.

• Approval requires a majority in number and 75% in value at the Court Meeting, and 75% of votes cast at the General Meeting.

• Board unanimously recommends voting “FOR” all resolutions; directors and executive officers intend to vote in favor.

• Voting can be done online, by mail, or during virtual meetings; beneficial owners must instruct their bank or broker.

Board of directors and corporate governance

• All current directors will become directors of New Gates; responsibilities and compensation remain unchanged.

• New Gates Bye-laws provide for majority voting, flexible board size, and allow for removal of directors by shareholder vote.

• Bermuda law and New Gates Bye-laws offer more flexible governance, including easier amendments and no statutory pre-emption rights.