Penn Entertainment issues letter to shareholders regarding board candidates

Penn Entertainment (PENN) issued the following letter to shareholders: “We are writing today to provide clarity on this year’s Annual Meeting. At the Annual Meeting, shareholders will have the right to elect two candidates to the Board – Johnny Hartnett and Carlos Ruisanchez – both of whom were initially proposed by HG Vora Capital Management, LLC. HG Vora is also soliciting proxies for a third director candidate, despite the fact there are only two director seats up for election. While HG Vora’s proxy statement indicates it is seeking injunctive relief to permit a vote for this third candidate at the upcoming Annual Meeting, this is not true. HG Vora’s public litigation filings confirm it is no longer seeking this injunction and, therefore, only two candidates will be up for election at this year’s Annual Meeting. Notwithstanding HG Vora’s efforts to portray this situation as a proxy contest, this is not a contested election. Both the Company and HG Vora are recommending the same two candidates at the Annual Meeting. Accordingly, we have made the decision not to spend the time and money to solicit proxies for the PENN White Card over the HG Vora Gold Card – a decision reinforced by recent conversations with our largest shareholders. Votes for Messrs. Hartnett and Ruisanchez on either card will be counted at the Annual Meeting. Following the elections of Messrs. Hartnett and Ruisanchez at our upcoming Annual Meeting, 75% of PENN’s directors will have joined the Board since 2019, and we will continue to consider opportunities to further refresh the Board.”