GameStop Corp. confirmed that major stockholder Hestia Capital Partners LP intends to nominate four individuals for election to the company’s Board of Directors at its 2019 Annual Meeting of Stockholders.
Hestia, which owns around 160,000 shares of GameStop stock, will be spearheading the initiative. While the meeting has not yet been scheduled, GameStop issued a statement on the matter:
“GameStop welcomes open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value. Over the past several weeks, members of GameStop’s Board and the Company’s advisors have had extensive correspondence and held multiple discussions with Hestia, Permit Capital, and their representatives to better understand their views.”
Previously, GameStop offered to nominate one of Hestia and Permit Capital’s proposed candidates in the past during negotiations for a settlement agreement, where GameStop claims that Hestia and Permit “declined to provide information on director candidates” outside of Hestia managing member Kurt Wolf, and thus rejected GameStop’s proposal. This would have meant that four new directors would have been appointed to GameStop’s Board within eight months, reducing “unnecessary expense and distraction.”
In the meantime, GameStop said it has been focused on driving shareholder value by appointing retail industry veteran George Sherman as the company’s new CEO and board member as well as announcing a new capital allocation plan meant to help increase the company’s financial flexibility, among other things, including strategic partnerships in the world of esports.
GameStop will be announcing a date for the 2019 Annual Meeting of Stockholders soon, but in the meantime is working in consultation with its advisors to confirm whether Hestia’s nominations are compliance with the company’s amended and restated bylaws as submitted.