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BGC Partners (BGCP) to Get Converted Into Corporate Structure

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BGC Partners, Inc. entered a corporate conversion agreement to reorganize and simplify its organizational structure through a series of proposed corporate conversion transactions. Also, it will change its name from BGC Partners, Inc. to BGC Group, Inc. The Nasdaq Global Select Market ticker symbol for the company will be changed to BGC.

Following the completion of certain conversion steps and related transactions, stockholders and employees of the company, and the former limited partners of BGC Holdings, L.P. will participate in the economics of the BGC businesses through the ownership of Class A common stock, Class B common stock, and incentive equity instruments in a single publicly traded corporation.

The agreement has been approved by the board of directors of the company at the recommendation of the independent audit committee and the independent compensation committee of the board.

Howard W. Lutnick, the chairman and chief executive officer of BGC Partners, said, “With the execution of these agreements the Company will move rapidly with its conversion to a simpler, more transparent corporate structure. We believe increasing simplicity, while reducing operational complexity, will deliver tremendous value to BGC. We are excited to announce the Company's name change from BGC Partners to BGC Group and our new simpler ticker symbol "BGC" at closing.”

Notably, the corporate conversion agreement contains certain termination rights, including the right of the parties to terminate the agreement if the corporate conversion transactions have not been consummated on or prior to May 15, 2023, and in the event of certain tax events.

Over the past year, shares of BGCP have lost 14.5% compared with a decline of 7.5% of the industry.

 

Zacks Investment Research
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Currently, BGCP carries a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks from the finance space are Ares Capital Corporation (ARCC - Free Report) and Gladstone Investment Corporation (GAIN - Free Report) .

The Zacks Consensus Estimate for Ares Capital’s current-year earnings has moved 6.2% higher over the past 30 days. Its shares have gained 7.6% in the past month. Currently, ARCC carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gladstone Investment currently sports a Zacks Rank #1. Its earnings estimates for the current fiscal year have been revised 21.5% upward over the past 30 days. In the past month, GAIN’s shares have rallied 11.7%.


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