PENN Entertainment intends to nominate Johnny Hartnett and Carlos Ruisanchez for election to its Board of Directors.
The two appointments were proposed by minority shareholder, HG Vora Capital Management, which has been vocal in its criticism of PENN’s foray into online sports betting and had planned to launch a proxy campaign.
PENN also confirmed that Ron Naples will retire from the Board with immediate effect, while Barbara Shattuck Kohn and Saul Reibstein have notified the company that they will not stand for re-election.
Hartnett and Ruisanchez will fill the two Class II director seats available for election at the company’s 2025 Annual Meeting of Shareholders.
PENN said that it remains focused on realizing the significant value creation opportunity across the business, and believes a costly and distracting proxy fight is not in the best interests of PENN and its shareholders.
“We look forward to benefitting from Johnny’s and Carlos’s fresh perspectives as we enter into a critical phase for the business,” said PENN’s Board in a statement Friday. “The Board continues to believe there is significant opportunity for value creation at PENN, particularly within our Interactive segment.
“Johnny and Carlos bring critical expertise and experience in the gaming industry, across both digital and retail, that are aligned with the Board’s priorities and are tailored to the opportunities in front of us. While we were unable to reach an agreement with HG Vora, we thank them for their input and look forward to continued engagement with all of our shareholders.
“We thank Ron, Saul and Barbara for their many years of distinguished service to the Board and our company and we are eager to begin working with our new directors to drive profitable growth for the benefit of all PENN shareholders.”
Hartnett joined Superbet’s Board in January 2024, after serving as CEO between 2019 and 2023. Prior to that, he spent 20 years at Flutter Entertainment, where he held multiple leadership positions as chief operating officer of Sportsbet (Australia), managing director of Paddy Power Betfair Online and Flutter International divisions, including leading the group’s M&A endeavours.
Ruisanchez currently serves as CEO of Sorelle Capital and president of Sorelle Hospitality, family office firms focused on investing and developing hospitality, consumer and real estate businesses. Prior to Sorelle, he served as president and chief financial officer of Pinnacle Entertainment until its sale to PENN Entertainment in 2018.
HG Vora Capital Management currently holds a 4.8 per cent stake in PENN Entertainment.
Shares in PENN Entertainment Inc (NASDAQ:PENN) closed 6.60 per cent higher at $16.15 per share in New York Friday.