Pershing Square Holdings Boosts Shareholder Value with $200M Buyback Program

Pershing Square Holdings, Ltd. (PSH) has announced an additional share buyback program worth $100,000,000 (approximately $200,000,000), following the completion of a previous $100,000,000 buyback program. This larger size is intended to reduce the risk of exhausting the program during periods with trading window restrictions on new authorizations. The program is expected to be accretive to the net asset value (NAV) per share and will reduce PSH's capital.

As of 13 December 2024, PSH had completed 29.3% of the previously announced $100,000,000 share buyback program. Since commencing the program on 27 November 2024, PSH has repurchased a total of 598,409 PSH Public Shares at an average price of $48.92. Since PSH commenced its first share buyback program on 2 May 2017, it has repurchased a total of 66,551,162 PSH Public Shares for a total of $1.4 billion at an average price of $21.06.

Jefferies International Limited will continue in its role as sole buyback agent for the program, enabling the purchase of shares during closed periods. Shares repurchased by the Company will be held in Treasury. The number of shares to be repurchased under the program is the maximum of $100,000,000 or 5,000,000 PSH Public Shares.

The share buyback program aligns with PSH's long-term investment strategy by being accretive to NAV per share, reducing capital, reducing the number of shares outstanding, and reducing the impact of market fluctuations. The program is expected to be accretive to NAV per share, as the repurchased shares are held in Treasury and do not contribute to the outstanding shares. This can lead to an increase in the net asset value per share for remaining shareholders.

The share buyback program can also signal to the market that PSH's management believes the current share price is undervalued, which could attract more investors and increase demand for the fund's shares. This, in turn, could lead to an increase in the fund's share price and overall performance.

In conclusion, PSH's share buyback program is a strategic move that aligns with the fund's long-term investment strategy. By repurchasing shares, PSH is effectively reducing the number of outstanding shares, which can increase the earnings per share (EPS) and net asset value (NAV) per share for remaining shareholders. This can lead to an increase in the fund's share price and overall performance. Additionally, the share buyback program can signal to the market that PSH's management believes the current share price is undervalued, which could attract more investors and increase demand for the fund's shares.