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BGC Group to Repurchase 16.4M Shares from Former CEO Howard Lutnick
ByAinvest
Wednesday, May 21, 2025 6:27 am ET1min read
BGC Group will repurchase 16.4 million shares from former CEO Howard Lutnick to align with his U.S. government ethics agreement. Lutnick will divest all ownership, voting, and economic interests in BGC as of May 16, 2025, as part of his agreement.
BGC Group, Inc. (BGC) has announced a significant move to align with former CEO Howard Lutnick's U.S. government ethics agreement. The company agreed to repurchase approximately 16.4 million Class A shares from Lutnick, valued at around $151.5 million. This repurchase, effective as of Monday, May 16, 2025, is a part of Lutnick's broader commitment to divest all ownership, voting, and economic interests in BGC [1].The transaction saw BGC buying the shares at approximately $9.21 each, which is equivalent to the stock's last sale on Friday, May 14, 2025. This move has significantly boosted BGC's share price, with the stock up 7.5% to $9.90 on Monday, May 16, 2025. As a result, BGC shares have increased by approximately 9% year-to-date (YTD) [1].
Lutnick also reached an agreement with real estate adviser Newmark Group (NMRK) to buy back 11 million of his shares for $127 million. This deal was based on the stock's last close price of $11.58. Additionally, Lutnick agreed to transfer his ownership interest in financial services firm Cantor Fitzgerald to trusts benefiting his sons Brandon and Kyle Lutnick, and his other adult children [1].
Cantor Fitzgerald, which agreed to buy approximately 9 million BGC Class B shares from Lutnick, will continue to have controlling interests in both BGC and Newmark. The current leadership team at Cantor Fitzgerald will remain in place while 26North will become minority investors [1].
The stock market's reaction to these developments has been positive, with BGC shares up ~9% YTD, and NMRK's stock on the session up 0.6% at $11.66, though down 9% in 2025 [1].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3RR0VO:0-bgc-group-gains-after-stock-repurchase-as-lutnick-divests-stake/
[2] https://www.rttnews.com/3540305/bgc-group-agrees-to-buyback-approx-16-5-mln-stock-from-former-ceo-howard-lutnick-stock-up.aspx
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