BGC Partners has secured the agreement of GFI Group’s board of directors to proceed with its takeover of the firm, after BGC exceeded its 45% requirement with nearly 48% of shares tendered.
In order to make closing the deal “even more certain”, BGC says it has also reduced the minimum tender condition to 43%.
As a result, GFI's board of directors unanimously agreed to support BGC's tender offer for all of the outstanding shares of GFI common stock at $6.10 per share in cash.
“We are excited to bring these two great companies together,” says Mickey Gooch, executive chairman of GFI. “I look forward to building upon our success to create an extraordinary partnership.”
BGC now plans to designate six out of eight directors of the expanded GFI board and is extending its tender offer deadline to 26 February, in order to give all stockholders the opportunity to tender in this final extension.
GFI is expected to operate as a division of BGC, reporting into Shaun Lynn, president of BGC, and its financial results are expected to be consolidated as part of BGC.
Going forward, BGC and GFI are expected to remain separately branded entities.
Gooch and GFI's current CEO, Colin Heffron, are expected to remain executives of GFI and members of its board of directors.
“We are thrilled to welcome the world class people from GFI into the BGC family,” adds Howard Lutnick, chairman and CEO of BGC.
“We have an extraordinary opportunity ahead to grow with BGC's strong financial position coupled with both companies' extraordinarily talented brokers and market leading technology.”
By having recommended that GFI stockholders tender their shares BGC, GFI's directors have recognised that BGC's offer is the best way to maximise shareholder value according to BGC.
The broker adds that now all conditions required to complete the transaction have been satisfied it is “prepared to move quickly” to close its fully-financed offer.
Heffron adds: “I believe GFI's leading technology and advanced global market position will enhance the services provided to customers of our combined business.
“More importantly, we look forward to working together as a separately branded division to continue providing market-leading intermediary services and trading technologies.”
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