Howard Hughes to create new holding company structure to promote growth
Howard Hughes Corp.'s stock (HHC) rose 2.6% in premarket trade Monday, after the company said its board has authorized the creation of a newly incorporated holding company structure, which will become the new parent and replace it as publicly traded entity on the New York Stock Exchange. The existing shares of The Howard Hughes Corporation stock, which mostly invests in real estate, will be automatically converted, on a one-for-one basis, into shares of common stock of The Howard Hughes Holding Corporation, which will retain the ticker symbol "HHC" as trading continues uninterrupted on the NYSE, the company said in a statement. "The company believes that implementation of the reorganization will promote the growth of its businesses, including by providing additional flexibility to fund future investment opportunities and to segregate assets and related liabilities in separate subsidiaries," said the statement. The move will be conducted as a tax-free transaction for U.S. federal income tax purposes. The reorganization is expected to be effective August 11, or close to that date. The stock has gained 7% in the year to date, while the S&P 500 has gained 17%.
-Ciara Linnane
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