Billionaire Bill Ackman aims to acquire Howard Hughes Holdings with a $1 billion offer, seeking majority control of the developer.
Ackman’s firm, Pershing Square Capital Management, already owns 37.6% of the company. His plan is to buy out other shareholders at $85 per share. That’s a hefty total of $1 billion!
He’s not too happy with how the stock has been performing lately. Ackman envisions turning Hughes Holdings into a diversified holding company, kind of like a modern-day Berkshire Hathaway.
Hughes Holdings has a lot going on, with projects in Texas, Arizona, Hawaii, Maryland, and Nevada. Summerlin, where they have a big presence, is a thriving community with over 120,000 residents.
The company has been selling land to homebuilders and has developed many projects in the Las Vegas area. If this buyout goes through, it would be another shift in ownership for the developer.
The land was originally acquired by Howard Hughes, the famous aviator, back in the 1950s. Since then, the company has changed hands a few times, with various owners making their mark.
In 2014, they opened Downtown Summerlin, a major retail hub that had been stalled during the economic downturn. The Howard Hughes Corp. has continued to grow, adding apartments, offices, and even a minor-league baseball stadium.
Ackman’s offer isn’t totally out of the blue. Last summer, he hinted at exploring options for his investment in Hughes Holdings. Now, he believes his firm is the right fit to take the company forward.
In his letter to the board, he referenced Howard Hughes and said, “Let’s give this bird some wings.” Sounds like he’s ready to take things to the next level!
If you want to reach out, you can contact Eli Segall at esegall@reviewjournal.com or call 702-383-0342.
