BGC Group, Inc. (NASDAQ: BGC) has announced a significant repurchase of 16,452,850 shares of its Class A common stock from Howard W. Lutnick, the former Chairman and CEO and the current United States Secretary of Commerce. The shares were repurchased at a price of $9.2082 per share, totaling $151,501,133. This move aligns with Mr. Lutnick's adherence to U.S. government ethics rules.
The company's Chief Financial Officer, Jason Hauf, emphasized the commitment to shareholder capital return, citing the record first-quarter results and anticipated strong cash flow generation. The repurchase of shares is seen as a strategic use of capital to deliver value creation to shareholders.
Furthermore, Mr. Lutnick has agreed to transfer his ownership interest in Cantor Fitzgerald to trusts for the benefit of his adult children, and he will also be divesting his ownership, voting, and economic interests in BGC as per the U.S. government ethics agreement. Cantor Fitzgerald will continue to be BGC's largest and controlling shareholder.
Following these transactions, BGC will continue to operate as a leading global marketplace, data, and financial technology services company, serving a diverse range of products and clients, including fixed income, foreign exchange, energy, commodities, and equities. The company has recently expanded its offerings to include the FMX futures exchange, in partnership with leading global investment banks and market-making firms. As a result of these announcements, the company's shares have moved 0.44% on the market, and are now trading at a price of $9.21. Check out the company's full 8-K submission here.
