Overview

• Bill Ackman’s Pershing Square has purchased 9 million newly issued shares of Howard Hughes at a 48% premium, increasing its stake to 46.9%.
• Ackman has assumed the role of executive chairman, with Pershing Square’s Ryan Israel named chief investment officer of Howard Hughes.
• The agreement limits Pershing Square’s voting power to 40% and its beneficial ownership to 47% to ensure balanced governance.
• Howard Hughes will pivot from its core real estate business to acquiring controlling stakes in smaller, high-growth companies as part of Ackman’s vision to emulate Berkshire Hathaway.
• The $900 million transaction includes a quarterly $3.75 million base fee and a market cap-based management fee for Pershing Square, with Howard Hughes shares rising nearly 3% on the news.