In a new 13D filing with the US SEC, Jeffrey Gates‘ Gates Capital Management reported holding 3.26 million common shares of Nortek Inc (NASDAQ:NTK), which amass 20.4% of the total outstanding stock. This represents an increase in the stake, as the fund previously held 3.11 million shares, according to its last 13F filing for the reporting period ended March 31. The new filing also revealed that the fund and the company have signed a Tender and Support Agreement, upon which Gates Capital Management agreed to tender all of its shares to a subsidiary of Melrose Industries PLC, which has recently signed a merger agreement to acquire Nortek (NASDAQ:NTK) for $86.00 per share (estimated total of $2.8 billion).
Nortek is a diversified industrial company that operates in six segments – Air Quality & Home Solutions, Custom & Commercial Air Solutions, Residential & Commercial HVAC, Ergonomic & Productivity Solutions, Audio, Video & Control Solutions, and Security & Control Solutions. Since the beginning of the year, the company’s stock has almost doubled. For the first quarter of 2016, Nortek (NASDAQ:NTK) reported earnings per share of $0.16 and revenue of $613.9 million, which compares to a loss per share of $0.87 and revenue of $572.7 million posted for the same period a year earlier.
At the end of the first quarter, 10 investors from our database were long Nortek (NASDAQ:NTK), compared to 14 funds in the previous quarter. Among them, the biggest position was disclosed by Gates Capital Management, and the second biggest was held by Kevin Michael Ulrich and Anthony Davis’ Anchorage Advisors, worth $73.6 million. Remaining investors with a similar bullishness include Edward A. Mule’s Silver Point Capital, Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors, and Jim Simons’s Renaissance Technologies.
Among investors who were no longer optimistic about investing in Nortek (NASDAQ:NTK) and who decided to sell its positions are Andre F. Perold’s HighVista Strategies, which said goodbye to the largest investment, valued at about $0.9 million in stock, and Alec Litowitz and Ross Laser’s Magnetar Capital, which dumped about $0.4 million worth of shares.
You can access the original SEC filing by clicking here.
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|GATES CAPITAL MANAGEMENT||0||3,260,633||0||3,260,633||3,260,633||20.4%|
|GATES CAPITAL MANAGEMENT GP||0||3,260,633||0||3,260,633||3,260,633||20.4%|
|GATES CAPITAL MANAGEMENT, INC||0||3,260,633||0||3,260,633||3,260,633||20.4%|
|JEFFREY L. GATES||0||3,260,633||0||3,260,633||3,260,633||20.4%|
Page 1 of 11 – SEC Filing
|SECURITIES AND EXCHANGE COMMISSION|
|Washington, D.C. 20549|
|Under the Securities Exchange Act of 1934|
|(Name of Issuer)|
|(Title of Class of Securities)|
Gates Capital Management, Inc.
1177 Avenue of the Americas, 46th Floor
New York, New York 10036
with a copy to:
Eleazer Klein, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
|(Name, Address and Telephone Number of Person|
|Authorized to Receive Notices and Communications)|
|(Date of Event Which Requires Filing of This Statement)|
If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule
13d-1(f) or Rule 13d-1(g), check the following box. [x]
(Page 1 of 11 Pages)
* The remainder of this cover page shall be filled out for a reporting
person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing
information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall
not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”)
or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).