This is a nice little Monday morning gift from Howard Hughes Corp (NYSE: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”) Howard Hughes Corp (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 (MUTF:FAIRX) Funds 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 Inc. (NYSE:BAM) (TSE:BAM.A) 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:

Capture675 Howard Hughes Increases Shareholder Ownership 10%

“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 Corp (NYSE:HHC). “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.”

By: valueplays