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2w ago

Bill Ackman Secures Near-Majority Stake in Howard Hughes with $900M Investment

The deal elevates Ackman to executive chairman as Howard Hughes pivots toward a Berkshire Hathaway–style holding company model.

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Howard Hughes CEO David O'Reilly will retain his position and have expanded responsibilities after the deal with Bill Ackman's Pershing Square.
Bill Ackman, chief executive officer and portfolio manager at Pershing Square Capital Management, speaks during the SALT conference in Las Vegas, Nevada, U.S. May 18, 2017. REUTERS/Richard Brian/File Photo

Overview

  • Pershing Square, led by Bill Ackman, has acquired 9 million newly issued Howard Hughes shares for $900 million at $100 per share, a 48% premium, raising its ownership stake to 46.9%.
  • Ackman has been appointed executive chairman of Howard Hughes' board, with Pershing Square CIO Ryan Israel taking on the same role at the company.
  • Howard Hughes will pay Pershing Square a quarterly base fee of $3.75 million and a management fee tied to changes in its market capitalization.
  • Pershing Square's voting power in Howard Hughes is capped at 40%, ensuring balanced governance despite its near-majority stake.
  • The investment aims to transform Howard Hughes into a diversified holding company while maintaining its core focus on real estate and master-planned communities.