Penn Entertainment
HG Vora Capital has become an active investor by reporting ownership of 14,500,000 shares in the gaming and entertainment company, Penn Entertainment. Additionally, HG Vora holds exposure to an additional 13,500,000 Penn shares through cash-settled swaps. In total, HG Vora has an 18.5% interest in Penn when combined with the common stock. Recognizing the significant undervaluation of Penn’s stock, HG Vora believes that board representation is crucial to address the persistent underperformance of the stock and Penn’s capital-allocation track record.
Regis
Galloway Capital Partners owns 111,800 shares of Regis, the parent company of branded salons such as Supercuts. This ownership represents 4.9% of the tradable stock. Galloway Capital acquired 16,100 Regis shares between November 1 and December 20 at prices ranging from $6.08 to $12.04 each.
Undervalued Stock Prompts Shareholder Support
In a letter sent to Regis CEO Matthew Doctor and Chairman David J. Grissen on Dec. 28, Galloway expressed his belief that the stock is significantly undervalued and emphasized the need for his support and expertise in creating shareholder value. Regis has already set up a special committee to explore “strategic alternatives,” but Galloway disagrees with its necessity. He pointed out Regis’ recent cost-cutting efforts and transition to a franchise system, moves that have not been adequately reflected in the stock price. Galloway believes he can provide valuable insights and take constructive actions, hence he is seeking the addition of two representatives on Regis’ board.
Starboard Value Acquires Significant Stake in Bloomin’ Brands
Starboard Value has recently acquired an 8,441,000-share stake in the parent company of Outback Steakhouse and Carrabba’s Italian Grill, accounting for approximately 9.7% of the outstanding stock. On Jan. 2, a cooperation agreement was reached between Starboard Value and Bloomin’ Brands. This agreement entails the appointment of two directors chosen by Starboard Value: partner John Sagal and former COO of Darden Restaurants Dave George.
To further enhance their collaboration, Bloomin’ Brands has established a new operating committee, which will be chaired by Dave George and joined by John Sagal. The agreement includes standard standstill provisions that Starboard Value will adhere to.
Riposte Capital Expands Holdings in SilverBow Resources
Riposte Capital increased its position in the gas and oil explorer, SilverBow Resources, by obtaining 2,475,000 shares. Between Dec. 20 and Dec. 29, Riposte Capital purchased 506,000 SilverBow shares at prices ranging from $28.08 to $29.78 per share.
Riposte Acquires 9.7% Stake in Energy Company
After a recent investment, Riposte now holds a significant 9.7% stake in the energy company. Riposte has been vocal about its concerns regarding SilverBow, particularly regarding their approximately $700 million acquisition of Chesapeake Energy’s South Texas assets in the previous year.
In November 2023, Riposte called for a board refresh, emphasizing the nomination of three new independent directors. They expressed their eagerness to support or propose suitable candidates for these positions.