WYOMISSING, PA — PENN Entertainment, Inc. (Nasdaq: PENN) issued a shareholder letter on May 27, addressing its ongoing dispute with HG Vora Capital Management regarding board appointments, regulatory compliance, and recent allegations against the company.
The letter clarified that PENN chose not to solicit proxies for its White Card over HG Vora’s Gold Card since both parties agreed on the nominees for the two open board positions. However, PENN noted that efforts to reach a settlement with HG Vora fell short due to conditions that violated directives from gaming regulators. Following the annual meeting, 25% of PENN’s board will comprise HG Vora nominees.
PENN emphasized the importance of maintaining compliance with gaming regulations, citing its 30-year reputation of trust with regulators and communities. “PENN’s gaming licenses are our most valuable assets – we understand and take our regulatory obligations seriously,” the letter stated, adding that HG Vora has “consistently disregarded the gaming regulatory regime” in efforts to influence the company.
The company also pushed back on HG Vora’s 116-page investor presentation, calling it “full of false claims and mischaracterizations.” PENN highlighted allegations about excessive management compensation, insider trading, and corporate aircraft misuse, asserting that HG Vora’s accusations were “not based on the facts readily available in our public disclosure.”
Despite the conflict, PENN affirmed its commitment to shareholder engagement and long-term value creation. “Our Board and management team are actively engaged with all shareholders and remain focused on executing on our strategy to create long-term shareholder value,” the letter concluded.
PENN Entertainment’s leadership remains steadfast in addressing the challenges posed by the dispute, underscoring its adherence to regulatory standards and focus on delivering results for stakeholders.
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