- Pershing Square offered $900M to increase its stake in Howard Hughes Holdings (HHH) to 48% from 37.6%.
- Under the deal, Bill Ackman would return as chairman and become CEO of Howard Hughes after Pershing’s most recent investment.
- Ackman plans to transform Howard Hughes into a diversified holding company, much like Berkshire Hathaway.
Bill Ackman’s Pershing Square offered $900M at a pretty premium to increase its Howard Hughes Holdings (HHH) stake to 48%, per WSJ. Once the deal closes, Ackman will become CEO and chairman of the aging brand.
Deal Details
Bill Ackman’s Pershing Square has made a new nonbinding offer to boost its ownership of Howard Hughes to 48% from 37.6%. If accepted, Ackman would take over as chairman and CEO, marking his return to leadership at the company after stepping down as chairman last May.
The offer includes purchasing 10M newly issued shares at $90 each—a 46% premium to Howard Hughes’ stock price on Aug. 5, before news of a potential deal broke. Pershing Square is funding the investment with cash on hand.
This proposal replaced a previous $1B bid made in January, which aimed to acquire 11.8M shares at $85 each.
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Ackman’s Bold Vision
Ackman’s vision for Howard Hughes involves transforming the company into what he describes as a “modern-day Berkshire Hathaway.”
In a post on X, Ackman stated the new Howard Hughes would “acquire controlling interests in private and public companies that meet Pershing Square’s criteria for business quality.”
Currently, Howard Hughes is led by Chairman Scot Sellers and CEO David O’Reilly. Under the new structure, Pershing Square would oversee risk management strategies affecting the company’s core real estate operations.
Market Reaction
Despite the premium offer and Ackman’s confidence in his own abilities, Howard Hughes shares fell 5.3% in after-hours trading, closing at $80.60, though they had briefly gained 6.8% during the regular session.
