BGC Partners Inc.'s board approved the distribution of all of the company's Newmark Group Inc. shares to its stockholders.
The brokerage and financial technology company will distribute the shares through a special pro rata stock dividend.
BGC class A common stockholders are expected to receive about 0.4613 of a Newmark class A common share for each BGC share held.
The spinoff will be effective Nov. 30 to BGC stockholders of record as of Nov. 23.
Following the spinoff, BGC will no longer hold any shares of Newmark, its commercial real estate services unit. Furthermore, Newmark's class A float will increase to about 150 million shares from about 23 million shares.
Goldman Sachs & Co. LLC, Cantor Fitzgerald & Co. and BofA Merrill Lynch served as financial advisers to BGC, while Wachtell Lipton Rosen & Katz and Morgan Lewis & Bockius LLP were legal advisers.
