Shares of Penn Entertainment experienced a significant boost on Thursday after a major shareholder expressed its desire to secure seats on the company’s board. This shareholder is none other than hedge fund HG Vora Capital Management, which currently holds an impressive 18.5% stake in Penn Entertainment, comprising both common stock and swaps.
In a securities filing known as a 13D, HG Vora Capital Management expressed its belief that Penn’s shares are being blatantly undervalued. To address this concern, the hedge fund has held discussions with the company’s management and board regarding various measures aimed at enhancing shareholder value.
The filing stated, “Given the persistent underperformance of the Common Stock and the Issuer’s capital allocation track record, amongst other areas of concern, the Reporting Persons have requested that the Issuer afford them the right to designate highly qualified directors who would be committed to working with the Issuer’s management and fellow Board members to help the Issuer realize its full potential.”
Penn Entertainment experienced a notable rise in share prices, with premarket trading indicating a 3% increase, bringing the stock price to $25.75.
As of now, both Penn Entertainment and HG Vora have not released any official statements regarding this matter.
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