Dec 18 (Reuters) - Bill Ackman-backed Howard Hughes Holdings said on Thursday it will buy specialty insurance firm Vantage Group Holdings for about $2.1 billion, as the real estate firm sharpens its focus towards diversifying beyond property development.
The real estate company will fund the deal with cash and up to a $1 billion loan from Bill Ackman-backed hedge fund, Pershing Square, which would be in the form of preferred shares in Vantage.
Howard Hughes said it could buy the stock back from Pershing
Square over seven years at a premium tied to Vantage's book value.
Ackman had previously raised his stake in Howard Hughes to 46.9% from 37.6%, with a $900 million investment in May. Shares of Woodlands, Texas-based Howard are up about 8% so far this year.
Howard Hughes is best known for its master-planned communities in places including Texas, Hawaii and Nevada.
Although the real estate firm has since shifted its focus towards buying controlling stakes in smaller businesses, the strategy is part of Ackman's broader effort to build a diversified holding company modeled after Berkshire Hathaway.
Bermuda-based Vantage Group uses technology and data analytics to underwrite and provide commercial property and casualty insurance products through its subsidiaries.
The deal for the company backed by Carlyle and Hellman & Friedman is expected to close in the second quarter of 2026.
J.P. Morgan Securities is advising Vantage, with Debevoise & Plimpton as legal counsel, while Jefferies is advising Howard Hughes.
(Reporting by Apratim Sarkar; Editing by Krishna Chandra Eluri)
