Howard Hughes Holdings Forms Special Committee to Evaluate Potential Take-Private
Howard Hughes Holdings Inc. (NYSE: HHH) has announced that its largest stockholder, Pershing Square Capital Management, L.P., is evaluating the possibility of taking the company private. Pershing Square, which owns approximately 37.5% of HHH's outstanding common stock, stated in a regulatory filing that it may acquire all or substantially all of the remaining shares, potentially with co-investors.
In response, HHH's Board of Directors has formed a Special Committee of independent directors to review any proposal from Pershing Square and evaluate it against other strategic alternatives, including remaining a public company. The Board and Special Committee are committed to acting in the best interests of HHH and its stockholders. However, there is no guarantee of any particular outcome, and HHH will not comment further until additional disclosure is deemed necessary or required by law.
Howard Hughes Holdings Inc. (NYSE: HHH) ha annunciato che il suo principale azionista, Pershing Square Capital Management, L.P., sta valutando la possibilità di privatizzare l'azienda. Pershing Square, che detiene circa il 37,5% delle azioni ordinarie di HHH, ha dichiarato in un filing normativo che potrebbe acquisire tutte o quasi tutte le restanti azioni, potenzialmente con co-investitori.
In risposta, il Consiglio di Amministrazione di HHH ha istituito un Comitato Speciale di amministratori indipendenti per esaminare qualsiasi proposta da Pershing Square e valutarla rispetto ad altre alternative strategiche, incluso il rimanere un'azienda pubblica. Il Consiglio e il Comitato Speciale si impegnano ad agire nel migliore interesse di HHH e dei suoi azionisti. Tuttavia, non c'è alcuna garanzia di un esito particolare, e HHH non fornirà ulteriori commenti fino a quando non sarà ritenuto necessario o richiesto dalla legge.
Howard Hughes Holdings Inc. (NYSE: HHH) ha anunciado que su mayor accionista, Pershing Square Capital Management, L.P., está evaluando la posibilidad de privatizar la empresa. Pershing Square, que posee aproximadamente el 37,5% de las acciones ordinarias de HHH, declaró en un archivo regulatorio que podría adquirir todas o casi todas las acciones restantes, potencialmente con co-inversores.
En respuesta, la Junta Directiva de HHH ha formado un Comité Especial de directores independientes para revisar cualquier propuesta de Pershing Square y evaluarla en comparación con otras alternativas estratégicas, incluida la posibilidad de seguir siendo una empresa pública. La Junta y el Comité Especial se comprometen a actuar en el mejor interés de HHH y sus accionistas. Sin embargo, no hay garantía de ningún resultado particular, y HHH no comentará más hasta que se considere necesario o que lo exija la ley.
하워드 휴즈 홀딩스 Inc. (NYSE: HHH)는 가장 큰 주주인 펄싱 스퀘어 캐피탈 매니지먼트, L.P.가 회사를 비상장으로 전환할 가능성을 평가하고 있다고 발표했습니다. 펄싱 스퀘어는 HHH의 발행된 보통주 약 37.5%를 소유하고 있으며, 규제 서류에서 남아 있는 모든 또는 대부분의 주식을 획득할 수 있다고 밝혔으며, 잠재적으로 공동 투자자들과 함께할 수 있습니다.
이에 따라 HHH의 이사회는 펄싱 스퀘어의 제안을 검토하고 이를 다른 전략적 대안과 비교하기 위해 독립 이사들로 구성된 특별 위원회를 설립했습니다. 이사회와 특별 위원회는 HHH와 주주들의 최선의 이익을 위해 행동할 것을 다짐하고 있습니다. 그러나 특정 결과에 대한 보장은 없으며, HHH는 추가적으로 법적으로 요구되거나 필요하다고 여겨질 때까지는 더 이상의 의견을 제시하지 않을 것입니다.
Howard Hughes Holdings Inc. (NYSE: HHH) a annoncé que son principal actionnaire, Pershing Square Capital Management, L.P., envisageait de privatiser l'entreprise. Pershing Square, qui détient environ 37,5% des actions ordinaires de HHH, a déclaré dans une déclaration réglementaire qu'il pourrait acquérir toutes ou presque toutes les actions restantes, potentiellement avec des co-investisseurs.
En réponse, le Conseil d'Administration de HHH a formé un Comité Spécial d'administrateurs indépendants pour examiner toute proposition de Pershing Square et l'évaluer par rapport à d'autres alternatives stratégiques, y compris le maintien en tant qu'entreprise publique. Le Conseil et le Comité Spécial s'engagent à agir dans le meilleur intérêt de HHH et de ses actionnaires. Cependant, il n'y a aucune garantie de résultat particulier, et HHH ne fera pas d'autres commentaires jusqu'à ce qu'une divulgation supplémentaire soit jugée nécessaire ou requise par la loi.
Howard Hughes Holdings Inc. (NYSE: HHH) hat bekannt gegeben, dass sein größter Aktionär, Pershing Square Capital Management, L.P., die Möglichkeit prüft, das Unternehmen privat zu nehmen. Pershing Square, das etwa 37,5% der ausstehenden Stammaktien von HHH besitzt, erklärte in einer regulatorischen Einreichung, dass es möglicherweise alle oder nahezu alle verbleibenden Aktien erwerben könnte, möglicherweise mit Co-Investoren.
In Reaktion darauf hat der Vorstand von HHH einen Sonderausschuss unabhängiger Direktoren gegründet, um jeden Vorschlag von Pershing Square zu prüfen und diesen gegen andere strategische Alternativen zu bewerten, einschließlich der Möglichkeit, ein öffentliches Unternehmen zu bleiben. Der Vorstand und der Sonderausschuss verpflichten sich, im Besten Interesse von HHH und seinen Aktionären zu handeln. Es gibt jedoch keine Garantie für ein bestimmtes Ergebnis, und HHH wird keine weiteren Kommentare abgeben, bis eine zusätzliche Offenlegung als notwendig oder gesetzlich vorgeschrieben erachtet wird.
- Potential for a take-private transaction, which could benefit shareholders
- Formation of a Special Committee to evaluate proposals and strategic alternatives
- Largest stockholder (Pershing Square) showing increased interest in the company
- Uncertainty regarding the company's future status as a public or private entity
- Potential conflicts of interest between majority and minority shareholders
Insights
This news is highly significant for Howard Hughes Holdings (HHH) and its investors. Pershing Square's potential move to take HHH private could have substantial implications:
- With a
37.5% stake, Pershing Square's interest in acquiring the remaining shares suggests they see untapped value in HHH. - The formation of a Special Committee indicates the board's commitment to shareholder interests and proper corporate governance.
- A take-private deal could offer a premium to current shareholders, potentially boosting short-term returns.
- However, it may limit future upside for investors who believe in HHH's long-term growth prospects as a public entity.
Investors should closely monitor developments, as the outcome could significantly impact HHH's stock price and shareholder value.
The formation of a Special Committee of independent directors is a crucial legal step in this potential take-private scenario. Key legal considerations include:
- Fiduciary duty: The committee must act in the best interests of all shareholders, not just Pershing Square.
- Fair valuation: Any offer will be scrutinized for fairness, potentially requiring independent appraisals.
- Regulatory compliance: The SEC will closely monitor the process, especially given Pershing Square's significant ownership.
- Minority shareholder rights: Protecting these will be paramount in any transaction structure.
The board's proactive approach in forming this committee demonstrates a commitment to a transparent and legally sound process, which is important for mitigating litigation risks often associated with take-private transactions.
This potential take-private move by Pershing Square signals broader market trends:
- Private equity interest in real estate and development companies remains strong, suggesting perceived value discrepancies between public and private markets.
- The timing aligns with a period of market uncertainty, where public valuations may not fully reflect long-term asset values, especially in real estate.
- HHH's diverse portfolio, including master-planned communities and commercial properties, may be more efficiently managed privately, away from short-term market pressures.
- This move could trigger interest in similar companies, potentially leading to a wave of consolidation in the real estate development sector.
Investors should consider how this trend might affect valuations across the industry and watch for similar moves by activist investors in comparable companies.
Announcement follows public statement by Company’s largest stockholder that it is evaluating the possibility of making a proposal to take HHH private
THE WOODLANDS, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company” or “HHH”) today announced that Pershing Square Capital Management, L.P., the Company’s largest stockholder, has stated in a regulatory filing that it is, and intends to continue, evaluating the possibility of various potential alternatives with respect to its investment in the Company, including a possible transaction in which it (either alone or together with one or more potential co-investors) may acquire all or substantially all of the shares of common stock in the Company not owned by Pershing Square and their affiliates, and in connection therewith take the Company private. Pershing Square made this statement in an amendment dated August 7, 2024, to its Schedule 13D filing with the Securities and Exchange Commission. Pershing Square currently owns approximately
The Company’s Board of Directors is aware of Pershing Square’s filing and has formed a Special Committee comprised of independent directors to review any proposal by Pershing Square, as and when received, and evaluate it in light of other strategic alternatives that may be available to HHH, including continuing to operate as a publicly traded company. The Board and the Special Committee are committed to acting in the best interests of HHH and its stockholders.
There can be no assurance that the foregoing will result in any particular outcome, and HHH does not intend to comment further on these matters until HHH determines that additional disclosure is appropriate or required by law.
About Howard Hughes Holdings Inc.
Howard Hughes Holdings Inc. owns, manages, and develops commercial, residential, and mixed-use real estate throughout the U.S. Its award-winning assets include the country’s preeminent portfolio of master planned communities, as well as operating properties and development opportunities including Downtown Columbia® in Maryland; The Woodlands®, Bridgeland® and The Woodlands Hills® in the Greater Houston, Texas area; Summerlin® in Las Vegas; Ward Village® in Honolulu, Hawaiʻi; and Teravalis™ in the Greater Phoenix, Arizona area. The Howard Hughes portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. Howard Hughes Holdings Inc. is traded on the New York Stock Exchange as HHH. For additional information visit www.howardhughes.com.
Safe Harbor Statement
Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize,” “plan,” “intend,” “assume,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in Howard Hughes Holdings Inc.’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. Howard Hughes Holdings Inc. cautions you not to place undue reliance on the forward-looking statements contained in this release. Howard Hughes Holdings Inc. does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
Contacts:
Howard Hughes Holdings Inc.
Media Relations
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com
Investor Relations
Eric Holcomb, 281-475-2144
Senior Vice President, Investor Relations
eric.holcomb@howardhughes.com
FAQ
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