BGC selling insurance business & Xebec Hydrogen Supply agreement +5

09:43 26-May-21

BGC Partners is selling its insurance business for $500M which equates to just over $1.30 per share.  The transaction is expected to close in the second half and the proceeds will be used for share buybacks and invested in Fenics growth.  I note that share buybacks had almost certainly not been executed up to this point, and think the initial 5% gain in BGCP should be just the beginning of gains in the stock.

Xebec has also announced that its Hygear subsidiary signed an agreement to provide 130K kg of hydrogen over 1.5 years to a fueling station in the Netherlands.  It's nice to see a second such agreement, and the rebate rate has fallen to 9.5%, which means that gains in XEBEF could be greater than the minimal fundamental impact.  I continue to have a price target above $5 for the shares.