PENN’s Letter Urges Support in HG Vora Proxy Fight
PENN Entertainment’s leadership urges shareholders to back its board and strategy in a proxy contest with HG Vora.
A Call to Shareholders
PENN Entertainment’s Chairman David Handler and CEO Jay Snowden sent a letter to shareholders, rallying support for the company’s board amid a proxy contest with activist investor HG Vora.
The letter, part of PENN’s Proxy Statement, frames the upcoming Annual Meeting on May 28, 2025, as a pivotal moment, urging votes for board nominees Johnny Hartnett and Carlos Ruisanchez.
PENN emphasizes its omnichannel strategy, blending online and retail gaming to compete in North America’s expanding betting market.
The letter highlights $1.7 billion in liquidity and a $350 million share repurchase plan for 2025, signaling confidence in long-term value.
Digital and Tech on Track
The letter touts PENN’s digital investments, led by Aaron LaBerge, former Disney CTO, with a proprietary platform saving costs and speeding innovation.
The Hollywood iCasino app, ranked second-best in the U.S. by Eilers & Krejcik, is gaining market share and boosting gross margins. These strides validate PENN’s strategy, despite short-term financial volatility.
PENN expects digital profitability across its portfolio within 12 months, alongside opening four major retail projects on budget. The company also plans to cut debt as its Interactive segment improves.
HG Vora, holding a 5% stake, seeks board changes to influence PENN’s direction, criticizing digital spending. PENN’s letter defends its board, recommending votes for Hartnett and Ruisanchez, ratification of PricewaterhouseCoopers as auditor, approval of executive pay, and a revised incentive plan. It opposes HG Vora’s smokefree policy report proposal.
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