PENN settles with activist investor HG Vora, appoints three new directors (updated)

PENN Entertainment

23/02/2026 12:32

Updates shares, adds analyst comment in paragraph 8

By Anshuman  Tripathy

Feb 23 (Reuters) - PENN Entertainment PENN.O said on Monday it has signed a cooperation agreement with activist investor HG Vora Capital Management and appointed three new independent directors to its board, settling a months-long proxy fight.

The casino operator said it added Heather Ace, Jeffrey Fox and Fabio Schiavolin to its board as part of the agreement.

HG Vora had been locked in a proxy battle with the casino operator for months after building a stake and outlining plans to nominate directors to PENN's board. It owns a 4.7% stake in PENN, according to data compiled by LSEG.

HG Vora declined to comment.

In 2025, HG Vora launched a proxy fight at the casino operator as it tried to elect three of its director candidates to its board, which was later backed by proxy advisory firm ISS.

HG Vora had previously expressed concerns about the company's stock performance and how management allocates capital.

     As of last close, shares of PENN have fallen about 90% from its highs in 2021. PENN was down 7.53% at $12.04 in afternoon trading.

"PENN made a poor digital investment when it acquired and later sold BarStool and the company has yet to see profitability improvement in the digital business," said Morningstar analyst Dan Wasiolek.

PENN along with its subsidiaries, operates a portfolio of casinos, racetracks, and online sports betting and iCasino offerings in 28 jurisdictions throughout North America, according to its website.

The company is expected to report its fourth-quarter results later this week on February 26.

 (Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo and Krishna Chandra Eluri)

 ((Anshuman.Tripathy@thomsonreuters.com;))