Leucadia National Boosts Stake in HomeFed Corporation (HOFD) Following an Agreement

In a new filing with the Securities and Exchange Commission, Leucadia National, managed by Ian Cumming and Joseph Steinberg, revealed boosting its stake in HomeFed Corporation (OTCMKTS:HOFD) to 9.46 million shares, from some 2.47 million disclosed in an earlier filing from February. In this way, the stake currently amasses 63.6% of the HomeFed’s outstanding stock, versus 31.40% held earlier.

Leucadia National Corp. (NYSE:LUK)

In another filing, HomeFed Corporation (OTCMKTS:HOFD), a company involved in the development of residential real estate projects in California, announced that last week it completed the acquisition of some real estate subsidiaries and investments from Leucadia, including around $12.5 million cash. Under the terms of the deal, Leucadia received approximately 6.99 million new unregistered shares of its common stock. HomeFed also plans to purchase the balance of the real estate investment in exchange for some 514,700 new shares at a deferred closing during the second quarter of 2014. In this way, following the full completion of the deal Leucadia will hold 65% of the outstanding common stock of HomeFed Corporation (OTCMKTS:HOFD). However, the investor will limit its voting rights and will not hold a majority voting interest in the company.

HomeFed Corporation (OTCMKTS:HOFD)’s stock gained over 32% since the beginning of the year, surging significantly amid the announcement about the agreement with Leucadia. It trails a P/E of 33.xx, which is higher than the average P/E among all property management companies of 28.xx. Leucadia National Corp. (NYSE:LUK)’s stock on the other hand, edged down by around 2%, mainly on the back of weak financial results such as the decline in terms of EPS from continuing operations to $0.01 in the fourth quarter of 2013, from $1.85 a year earlier.

A couple of weeks ago, Leucadia acquired a total of 23.0 million shares of Phil Falcone‘s Harbinger Group Inc (NYSE:HRG), which sold its own stock. Moreover, Leucadia holds a significant position in INTL Fcstone Inc (NASDAQ:INTL), which amasses 918,000 shares, valued at $16.98 million.

Disclosure: none

Recommended Reading:

Luxor Capital Group Sells Over 2.0 Mln Shares of William Lyon Homes (WLH)

Shah Capital Management Further Raises Position in Corinthian Colleges Inc (COCO)

Billionaire Leon Cooperman Buys Shares of PennyMac Financial Services Inc (PFSI)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!