GFI Group to delist common stock from NYSE

GFI Group Inc. (NYSE:GFIG), the US-based provider of brokerage, trade execution and clearing services, has unveiled plans to delist and deregister its common stock, which is currently trading on the New York Stock Exchange. The company attributed its decision to the upcoming changes related to the deal with BGC Partners, Inc. (NASDAQ:BGCP) and the lack of material benefits from maintaining such a listing.

The announcement, published on March 19th, says that GFI Group has already informed the NYSE of its plans to voluntarily delist and deregister the common stock under the Securities Exchange Act of 1934. The delisting is set to become effective 10 days after the filing of the required Form 25 with the Securities and Exchange Commission.

However, GFI intends to make voluntary SEC filings with respect to its 8.375% Senior Notes due July 2018, in compliance with its obligations under the related indenture.

The company explains that about 56% of the outstanding shares of its common stock are held by BGC Partners, Inc. or its affiliates, whereas approximately 38% of the outstanding shares are held by Jersey Partners Inc. (“JPI”) as well as by certain members of GFI’s management team and their respective affiliates.

GFI also reminds that under the terms of its deal with BGC, it will operate as a consolidated subsidiary of the latter.

Taking into account these circumstances, GFI’s Board of Directors has concluded that the added costs of compliance, the demands of management’s time, and the resources required to maintain GFI’s NYSE listing and to continue its SEC reporting obligations surpass the benefits received by the company and its stockholders.

GFI adds that has no intention to float its stock on another securities exchange. The common stock may, however, be quoted in one or more OTC markets. Another important explanation is that before the completion of the full merger of BGC and GFI, BGC may purchase shares of GFI common stock in either open market or privately negotiated transactions.

The view the official announcement on the matter, click here.

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