GAMCO spins-off Gabelli Securities

    Mario Gabelli

    Gabelli Securities Group (GSG) is going independent and public.

    GSG is currently the alternative management and institutional research services business for Mario Gabelli’s GAMCO Investors. After the split, GAMCO will retain $46.5 billion in assets under management, and GSG will take $1 billion in assets under management, reports ValueWalk. GAMCO investors will receive one share of GSG class A common stock for each GAMCO class A common stock they own at the time of the spin-off. Class B common stock will be distributed in the same manner.

    Splitting the company makes sense for GAMCO, the firm explains in its regulatory filing. Each firm will be able to create strategic plans and search for growth in ways that fit them. They will also be able to separately raise and allocate resource through debt and equity offerings. Gabelli and his affiliates will retain about 95% of GSG voting power, and more than 70% of its common stock.

    Exact timing for the split is yet to be announced.

    Photo: Insider Monkey via Flickr.