HCHC - HC2 Holdings soars 5% following completion of sale of insurance business for $90M

HC2 Holdings (HCHC) rose +5.20% to $4.25 after-hours amid the announcement that the company completed the sale of its insurance segment to Continental General Holdings LLC, an entity controlled by Michael Gorzynski, for $90M.The company's insurance segment comprised of Continental Insurance Group Ltd. and its wholly-owned subsidiaries, Continental General Insurance Company and Continental LTC Inc.Gorzynski, a director of HC2 and holds ~6.6% of its outstanding common stock, is the managing member of MG Capital Management and has also served as executive chairman of Continental since October 2020.The total transaction value of about $90M consists of a combination of $65M in cash plus securities, including certain assets of Continental.Chairman of HC2 Avie Glazer said "Going forward our focus will be on our three core operating segments – Infrastructure, Life Sciences and Spectrum." Source: Press Release

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HC2 Holdings soars 5% following completion of sale of insurance business for $90M