HCHC - HC2 rallies 13% higher on offloading continental insurance business for $90M

HC2 (HCHC) surged 13.1% higher premarket entered into a definitive agreement to sell its insurance segment, comprised of Continental Insurance and its wholly-owned subsidiaries, Continental General Insurance and Continental, to Continental General Holdings, an entity controlled by Michael Gorzynski.Mr. Gorzynski is a director of HC2 and holds ~6.6% of its outstanding common stock.The total transaction value of ~$90M consists of a combination of $65M in cash plus securities, including certain Continental assets.Proceeds to be used for general corporate purposes."The sale of Continental will allow HC2 to focus on its three core operating segments – Infrastructure, Life Sciences and Spectrum," chairman Avie Glazer commented.Transaction expected to close in 3Q21.

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HC2 rallies 13% higher on offloading continental insurance business for $90M