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Howard Hughes Holdings (HHH) is a publicly traded real estate development and management company. It’s named after the famous businessman, aviator, and filmmaker Howard Hughes, but its operations are not directly tied to his personal legacy. The stock is up +8.5% on the news. The current financial breakdown of HHH Q3 2024 Results: Rev: $327.1M ( +43% yoy) Overall a very strong quarter & revenue is forecast to grow 15% p.a. on average during the next 3 years, (compared to 11% growth forecast for the Real Estate industry in the US). What’s Ackman’s plan? In a letter posted on X this morning: “Proposing a potential merger transaction in which a newly formed merger subsidiary of Pershing Square Holdco, L.P. would merge with and into the Company, with the Company as the surviving corporation in the Merger” What’s this mean? Bill Ackman’s Pershing Square offered to acquire the remaining shares of Howard Hughes Holdings for $85 per share, an 18% premium over the last closing price. The proposal aims to transform the company into a diversified investment entity akin to a “modern-day Berkshire Hathaway”. Ackman also made clarifications. In plain english: The deal involves Pershing Square directly acquiring 11.8M shares and HHH repurchasing 5.9M shares. Shareholders have the option to receive cash or a combination of cash and stock in a new subsidiary. Ackman’s HHH history Last reported on 9/24, Pershing Square owns 18,852,064 shares (~$1.4B of Howard Hughes stock). Ackman first purchased shares back in 2010 and currently it makes up over 11% of his portfolio. YTD the stock has underperformed the market with a +1.45% gain. What’s special about this deal? The way that this deal is structured is akin to Buffett’s acquisition of textile mill Berkshire Hathaway. Ackman is creating a subsidiary underneath Pershing Square that will acquire the company and he is bullish that this business will create the capital to acquire more. Ultimately this could be a new direction for Ackman & a shift away from being a hedge fund manager. Ackman has his eyes on becoming the modern day Buffett: holding a conglomerate of companies rather than aggressively stock pick winners & losers. https://reddit.com/link/1i0ldo8/video/7v1y6e035tce1/player Will Ackman be as successful as Buffett? We don’t know, but for now we have to wait and see. submitted by /u/XGramatik |
Burrytracker: Hedge fund manager Bill Ackman is seeking to bid for Howard Hughes Holdings $HHH at $85 per share. 🧵 Here’s a full breakdown of the deal and why it proves that Ackman is trying to be the next Buffett
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