Ackman's Pershing Square To Exit Nomad Stake Via ~$470M Offering

Sep 6 2017 | 11:56pm ET

Fresh off the launch of a proxy battle with Automatic Data Processing, Bill Ackman’s Pershing Square Capital Management is liquidating its large stake in Nomad Foods.

Pershing Square makes concentrated investments in only 8-12 positions at a time, making the decision to exit Nomad even more noteworthy. The $9.8 billion activist hedge fund manager is Nomad’s largest shareholder.

Nomad and Pershing jointly announced a public secondary offering for Pershing’s stake of more than 33 million shares worth $470 million as of Wednesday’s closing price of $14.25 per share. The offering is subject to market conditions, the statement said, and no assurance was given about whether or to what extent the sale will be completed. Nomad itself will buy back some $100 million, according to a filing. 

Pershing’s investment in Nomad dates back to 2015 and was made through a SPAC, according to Reuters. The investor paid approximately $10.50 per share for the stake, meaning the Nomad exit will be a moneymaker for Ackman at a time when the famed activist investor is coming off a disastrous investment in Canadian pharmaceuticals company Valeant. 

Further details about the divestment were not immediately available. 

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