San Diego Business Journal

Leucadia National Boosts Stake in HomeFed Corp. in Cash-Stock Deal

By Lou Hirsh Monday, March 3, 2014

New York City-based Leucadia National Corp. will increase its stake in investment and development firm HomeFed Corp., under terms of an agreement in which the Carlsbad-headquartered HomeFed will receive $18.4 million in cash, along with certain real estate holdings of Leucadia.

According to filings with the Securities and Exchange Commission, the deal involves Leucadia holdings and subsidiaries based in Colorado, Utah, New York and Delaware. HomeFed officials said the agreement calls for HomeFed in exchange to issue 7.5 million new unregistered shares of its common stock to Leucadia.

The deal is slated to close by month’s end and is subject to customary closing conditions. On closing, Leucadia will own approximately 65 percent of HomeFed’s outstanding shares of common stock, although Leucadia has agreed to limit its voting rights so that it will not have a majority voting interest in HomeFed.

HomeFed, which trades on over-the-counter markets under the symbol HOFD, oversees residential and commercial real estate projects, primarily in California and Virginia. Its local projects include the master-planned San Elijo Hills in San Marcos and a portion of the Otay Ranch planning area in Chula Vista.

HomeFed also owns Fanita Ranch, a 2,600-acre undeveloped parcel in Santee.

Leucadia National Corp. (NYSE: LUK) is a holding company with subsidiaries involved in industries including real estate, investment banking, capital markets, beef processing, manufacturing and energy projects.

Leucadia also has equity interests in a commercial mortgage banking and servicing business, auto dealerships and telecommunications services in Italy.