By Denny Jacob
Howard Hughes Holdings said Bill Ackman's Pershing Square Capital Management will invest $900 million in the company, boosting its stake further and bringing Ackman back into the fold.
The real estate company said Pershing Square's investment, netting an acquired 9 million newly issued shares, will bring its stake up to 46.9% of its outstanding shares. It added that Pershing Square has generally agreed to limit its voting power to 40% and its beneficial ownership to 47%.
Ackman was named executive chairman of the board, while Pershing Square Chief Investment Officer Ryan Israel will become Howard Hughes's chief investment officer.
Ackman served as chairman of Howard Hughes's board from 2010 until his retirement last May.
Howard Hughes said it will pay Pershing Square a quarterly base fee of $3.75 million, among other financial terms.
Howard Hughes' board will consist of a majority of independent directors, with Pershing Square having the right to nominate three directors so long as it continues to beneficially own at least 17.5% of the real estate company's fully diluted shares.
Ackman and Howard Hughes have more recently tangled for nearly a year. The hedge-fund manager in August said he was considering a bid to take the company private. The two sides went back and forth on potential terms in the ensuing months, most recently in April when Howard Hughes again extended its standstill deal with Ackman to increase his stake.
Ackman has called Howard Hughes a modern-day Berkshire Hathaway.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 05, 2025 07:28 ET (11:28 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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