Howard Hughes Holdings Inc. (HHH) and Pershing Square Capital Management, L.P. said Monday that Pershing Square will invest $900 million to acquire 9,000,000 newly issued shares of HHH. Pershing Square’s investment will enable HHH to become a diversified holding company by acquiring controlling stakes in public and private operating companies while continuing to invest in and grow its core real estate development and Master Planned Communities business.
Pershing Square’s chairman and CEO, Bill Ackman, has been named executive chairman of the HHH board. Ryan Israel, Pershing Square’s CIO, will become HHH’s CIO, a new senior leadership role at the Company. The HHH leadership team, led by CEO David O’Reilly, will remain unchanged with expanded roles and responsibilities. HHH’s other employees will remain unchanged.
“I am delighted to return to HHH as its executive chairman with the addition of Ryan to assist in transforming the Company to a diversified holding company,” said Ackman. “We believe that HHH is a superb platform to build a faster-growing, high-returning holding company that will acquire control of companies that meet Pershing Square’s criteria for business quality and durable growth. We are looking forward to working with David and the rest of the HHH team in creating long-term value.”
Morgan Stanley is acting as exclusive financial advisor to the HHH board’s special committee, and Hogan Lovells US LLP and Richards, Layton & Finger, P.A. are acting as legal counsel. Morgan, Lewis & Bockius LLP is acting as legal counsel to HHH. Jefferies LLC is acting as financial advisor to Pershing Square, and Sullivan & Cromwell LLP and Morris, Nichols, Arsht & Tunnell LLP are acting as legal counsel.
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