Bill Ackman’s Pershing Square Holdco LP has submitted a new non-binding proposal for a $900 million acquisition of Howard Hughes Holdings Inc. (NYSE: HHH).
The new proposal would have Pershing Square acquire 10,000,000 newly issued common shares of HHH for $90 per share – last month, the company made an offer for $85 per share. Pershing Square’s ownership would increase from 37.6% to 48% of shares outstanding.
Bill Ackman would become chairman and CEO of Howard Hughes Holdings while Pershing Square executives Ryan Israel would become chief investment officer and Ben Hakim would become president, while three Pershing Square approved individuals would join the Howard Hughes Holdings’ board of directors. Howard Hughes Corporation, the acquired company’s main subsidiary, would remain unchanged with senior leadership led by CEO David O’Reilly.
“The $900 million cash infusion will enable HHH to immediately begin to pursue the acquisition of controlling interests in public and private companies as part of its new strategy of becoming a diversified holding company; the transaction is expected to be credit rating positive for the company,” Pershing Square said in a statement.
Howard Hughes Holdings acknowledged receiving Ackman’s proposal but noted that it “has not engaged in any negotiations with Pershing Square regarding any of its proposals, nor has it come to any determination regarding any of Pershing Square’s proposals.”
Photo courtesy of Pershing Square Foundation
