Activist investor Corvex Management, which is pressing for a sale on Kindred’s board, has asked to become the Unibet operator’s largest shareholder and participate in the nomination of the next board.
Corvex made headlines when it announced it had acquired a 10% stake in Kindred, and immediately asked the board to sell it.
iGB understands that Kindred’s board has since reached out to other operators and private equity businesses, but has been unable to find an interested buyer at current prices.
A source told iGB that prospective buyers see Kindred as too late to adapt to growing interest in locally regulated markets.
Today, Corvex has increased its stake in Kindred to 15.0%, overtaking fellow investment business The Capital Group to become Kindred’s largest shareholder.
Corvex said it plans to participate in the process of nominating Kindred’s board of directors because it has a larger stake.
“As Kindred’s largest shareholder, I intend to formally express my interest in joining the nomination committee. It is my understanding that the nomination committee will be established at the end of August or shortly thereafter,” said Corvex’s founder. Keith Meister, Principal, said:
“I look forward to working with representatives of Kindred’s other major shareholders and Kindred Chairman Ebert Carlson on the newly formed Nominating Committee. We should seek to appoint directors with the power to maximize long-term risk-adjusted value for all shareholders.”
Meister also reiterated his belief that the sale made sense, and outlined that he would push for the election of a board of directors who would hold to that belief.
“We are thrilled to be a significant investor in the company and believe it is worth far more than the current trading price of Kindred’s stock suggests,” he said. .
“As stated in our May 4th press release, Kindred continues to believe that all potential strategic alternatives, including the sale of the company, should be considered. The board, in line with the interests of the company, will be best positioned to consider potential alternatives to the company’s status quo business plan.”
