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Key Takeaways
- Hedge fund HG Vora Capital Administration is looking for board seats at Penn Leisure Inc., in keeping with a regulatory submitting.
- HG Vora has an 18.5% curiosity within the on line casino group.
- The hedge fund expressed considerations about Penn Leisure administration’s capital allocation.
Penn Leisure Inc. (PENN) shares rose as a lot as 7% on Thursday after it was disclosed {that a} main investor is pursuing seats on the on line casino operator’s board.
Hedge fund HG Vora Capital Administration has an 18.5% stake in Penn Leisure, together with swaps, and is in talks with the agency over the potential board seats, in keeping with a regulatory submitting. It wasn’t clear what number of seats the funding agency, run by former Goldman Sachs banker Parag Vora, was searching for.
The chance to appoint new board members forward of Penn’s 2024 annual assembly runs from Jan. 8 via Feb. 7, 2024. The Wall Avenue Journal, citing sources near the matter, reported that the hedge fund might resort to a proxy combat ought to its negotiations fail to safe board seats.
“Given the persistent underperformance of the Widespread Inventory and the Issuer’s capital allocation monitor document, amongst different areas of concern, the Reporting Individuals have requested that the Issuer afford them the correct to designate extremely certified administrators who can be dedicated to working with the Issuer’s administration and fellow Board members to assist the Issuer notice its full potential,” mentioned HG Vora in its ’s 13D submitting Thursday to the Securities and Change Fee (SEC) mentioned.
Penn Leisure was dropped from the S&P 500 in Sept. 2022, lower than two years after being added. Throughout its transient time within the index, Penn’s share worth fell about 75% from $130 to only $31.
Regardless of Thursday’s good points, Penn Leisure shares are down greater than 10% year-to-date.
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