Ackman's $900 Million Power Play: Pershing Square Takes Massive Stake In Howard Hughes With 48% Premium

Howard Hughes Holdings Inc. HHH shares traded higher premarket on Monday. The company disclosed an agreement with Pershing Square to invest $900 million to acquire 9,000,000 newly issued HHH shares.

Hedge fund titan Bill Ackman's Pershing Square’s $100 per share acquisition of HHH stock represents a 48% premium over the closing price on Friday, May 2, 2025.

Following the investment, Pershing Square will hold 46.9% of HHH’s outstanding shares but has generally agreed to cap its voting power at 40% and beneficial ownership at 47%.

This investment will enable HHH to diversify into a holding company by acquiring controlling interests in operating companies while continuing its core real estate development and Master Planned Communities business.

Earlier in January, Bill Ackman offered $85 per share and later raised it to $90 in February.

Pershing Square Holdco is primarily owned by Pershing Square principals (90%), with the remaining 10% held by strategic investors.

Also Read: Howard Hughes Stock Jumps 11% Monday Pre-Market After Bill Ackman’s Pershing Square Proposes $1B Stake Boost

Holdco’s $900 million investment translates to an $810 million cash investment by the Pershing Square principals when considering their ownership stake. Combined with their existing holdings in HHH, the total investment by Pershing Square’s principals in HHH amounts to $1.2 billion.

HHH will compensate Pershing Square with a quarterly base fee of $3.75 million.

A quarterly management fee will also be paid, calculated as 0.375% of the growth in HHH’s equity market capitalization exceeding a defined Reference Market Cap.

Bill Ackman has been appointed the executive chairman of HHH’s Board of Directors.

As part of this transaction, HHH will now have access to all of Pershing Square’s resources to facilitate the transformation through investment, guidance, and various supporting services.

Investors can gain exposure to the stock via Texas Capital Texas Small Cap Equity Index ETF TXSS and LeaderShares Activist Leaders ETF ACTV.

Price Action: HHH shares are up 9.35% at $73.78 premarket at the last check on Monday.

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