Howard Hughes Increases Shareholder Ownership 10%
- Posted by ToddSullivan
- on December 10th, 2012
This is a nice little Monday morning gift from $HHC to shareholders….
The Howard Hughes Corporation Announces Retirement of 6,083,333 Sponsor Warrants for $80,548,000 Cash and 1,525,272 Common Shares
Shareholders Now Own 10.1% More of the Company as a Result of these Transactions
DALLAS–(BUSINESS WIRE)–Dec. 10, 2012– The Howard Hughes Corporation (“Howard Hughes” or the “Company”) (NYSE: $HHC) today announced that is has retired 6,083,333 Sponsor warrants for $80,548,000 in cash and the issuance of 1,525,272 shares of common stock.
On December 7, 2012, affiliates of Blackstone Real Estate Partners sold their 333,333 warrants and the Fairholme Funds ($FAIRX) sold their 1,916,667 warrants to The Howard Hughes Corporation for $30.00 cash per warrant. On November 9, 2012, affiliates of Brookfield Asset Management ($BAM) exercised a portion of their warrants and sold to the Company the remainder of their warrants in exchange for 1,525,272 shares of the Company’s stock and a net $13,048,000 cash payment. All of the extinguished warrants had a $50.00 per warrant exercise price and a November 2017 expiration date. Together, the warrant transactions reduced diluted shares outstanding by 9.2%, or 4,558,061 shares, as reflected in the table below:
“I expect that the retirement of these warrants will be significantly accretive because our shareholders will now own 10.1% more of the Company,” said David R. Weinreb, Chief Executive Officer of The Howard Hughes Corporation. “Since becoming a public company, Howard Hughes has made substantial progress in advancing the development and redevelopment of our assets. We have built a premier real estate investment and development company and are confident that we will unlock substantial additional value over the next several years as we develop our properties.”
To see more posts on any of the companies mentioned in this article, enter their stock ticker symbol in the search box.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Todd's investing strategy is essentially long with the rare short. He seeks to buy undervalued issues with an upcoming catalyst that will help them realized.... More »
aapl acas ackman aig AN bac BAM BBI bgp BPO buffett CC CODi CRE davidson dow einhorn employment ETFC f fairx FNMA fnmas ggp hhc housing IGOI jcp jmba joe mbi mcd mgm MO oesx PM rail sbux seth klarman SHLD spg spy theory VIC xom