After recently double its bet in Kindred Group, Keith Meister’s Corvex Management is pushing the Swedish gaming society to employ investment bankers and sell itself.
Corvex, a New York-based activist investor, issued a statement today urging Kindred’s get on of directors to straightaway take a sale.
Given recent developments, we believe the Kindred Board should forthwith keep back a leading, planetary financial advisor to evaluate strategic alternatives, including the potential economic value that could be achieved through a sale or byplay combination,” according to a statement issued by Corvex.
The military press outlet collide with the wires just now days after Kindred revealed Meister’s investment house at present owns 10.12% of its shares outstanding. That substance in the span of fewer than trinity months, the hedgerow monetary fund roughly doubled the size of its post in the gaming company.
Corvex bought an initial post of to a greater extent than 5% in Kindred inward February.
For Corvex, Interesting Timing inwards Pushing for Kindred Sale
Corvex is an activist investor, signification that when it takes equity positions inward companies, it does so under the auspices of pushing for some spring of change.
Those suggested alterations can buoy include shedding lagging businesses, other avenues for unlocking shareholder value, or outright sales.
The hedge in fund’s pushing for Kindred to pass judgment a sales event comes just ii days after MGM Resorts International (NYSE:MGM) floated a $607 one thousand thousand cash in offer for internet cassino and sportsbook manipulator LeoVegas AB. Like Kindred, LeoVegas is a Swedish company, and Meister is a get on member at MGM. The cassino behemoth is offering $6.20 a apportion for the Swedish gaming company, and the business deal could come together before the stop of 2022 if the proposal is accepted. It’s unclear if that transaction will factor into Kindred’s decision-making process.
“A to the full informed Board will follow inward the best situation to press any strategic alternatives, compared with Kindred’s stand-alone business concern plan. While we hold non pre-judged any track for Kindred, we trust the Board should possess all relevant market info and allow the information take the decision-making process,” according to the Corvex statement.
Kindred Response
While highlighting Kindred’s enviable positioning in the world-wide online gaming market, Corvex acknowledges having “constructive conversations” with the company’s chairman of the plank and senior management.
The Kindred response to the sidestep fund auguring for a sales event is typical of most companies in this position.
We are sure-footed virtually the long-term opportunities for the society and value conception potentiality for all our shareholders. We receive and looking forrard to continuing a constructive duologue with all our shareholders sledding forward,” said Chairman of the Board Christine Marie Evert Carlsson inwards a statement.
Corvex did non name possible suitors for Kindred, or if it’s had conversations with parties interested inwards acquiring the gaming operator.
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