NEW YORK, June 3, 2020 /PRNewswire/ -- Hestia Capital
Partners LP ("Hestia"), Permit Capital Enterprise Fund, L.P.
("Permit") and their affiliates (the "Investor Group"), who
beneficially own approximately 7.2% of the outstanding shares of
GameStop Corp. (NYSE: GME) (the "Company"), announced that Glass
Lewis & Co. ("Glass Lewis"), a leading independent proxy voting
advisory firm, has recommended that GameStop stockholders
vote the Investor Group's WHITE proxy card FOR the election of
Paul J. Evans and Kurtis J. Wolf at the Company upcoming
Annual Meeting of Stockholders on June 12,
2020.
The Investor Group encourages its fellow stockholders to read
its proxy materials and stockholder letters, which are accessible
at www.RestoreGameStop.com.
John Broderick, a Partner with
Permit, stated "We are gratified that both leading independent
proxy advisory firms, Glass Lewis and ISS, have recognized the need
for change at GameStop and have endorsed our efforts to improve its
board. We are extremely appreciative of the thoughtful, independent
analysis that Glass Lewis performed in recommending the election of
Paul Evans and Kurt Wolf."
Kurtis Wolf, Managing Member of
the General Partner of Hestia, added "We believe that Glass Lewis
has done all GameStop stakeholders a tremendous service by
diligently analyzing the situation, and recommending
stockholder-friendly change on GameStop's Board. If elected,
Paul and I look forward to working with GameStop's other directors
to unlock value for the benefit of GameStop employees, customers,
vendors and stockholders."
In its 27-page research report, Glass Lewis performed a detailed
analysis of both sides' positions and considered, among other
items, the Company's persistent operating and stock price
underperformance, the market's sentiment toward the Company's
strategy, and the appointment of new directors that can help
execute a turnaround at the Company. Glass Lewis ultimately
concluded that stockholders should vote on the WHITE proxy
card FOR the election of Paul J.
Evans and Kurtis J. Wolf.
In its report, Glass Lewis stated:1
"…after having thoroughly reviewed the information and
arguments presented by [Permit/Hestia] and the Company, we
believe that [Permit/Hestia] have made a compelling case to support
the election of [Permit/Hestia's] Nominees to the Company's
board."
Glass Lewis highlighted the value that Mr. Evans and Mr. Wolf
would bring to the Board, stating:
- "In our view, [Permit/Hestia] have accurately highlighted
key shortcomings at the Company, particularly with respect to share
price performance, operational performance and broader market
perception."
- "We believe that the addition of [Permit/Hestia's] Nominees
could help the Company to address the foregoing issues given their
respective backgrounds and experiences."
- "With the board currently being heavily weighted towards
executives with retail backgrounds, we believe that the Company
could benefit from the addition of new directors who would bring
different perspectives along with useful skill sets, such as
[Permit/Hestia's] Nominees."
In conclusion, Glass Lewis stated:
"Accordingly, we recommend that shareholders vote on the
Dissidents' WHITE proxy card FOR all nominees."
GAMESTOP STOCKHOLDERS, GLASS LEWIS AND ISS HAVE SPOKEN.
THE TIME FOR ACTION IS NOW. VOTE YOUR WHITE PROXY TODAY TO
ELECT PAUL J. EVANS AND KURTIS J. WOLF TO THE BOARD AT THE
COMPANY'S UPCOMING ANNUAL MEETING.
If you have already voted GameStop's blue proxy card, a later
dated WHITE proxy card will revoke your previously cast
vote.
If you have any questions about how to vote, the Investor
Group's proxy solicitor Saratoga Proxy Consulting can be reached at
info@saratogaproxy.com or (888) 368-0379.
About Hestia Capital
Hestia Capital is a long term
focused, deep value investment firm that typically makes long-term
investments in a narrow selection of companies facing
company-specific, and/or industry, disruptions. Hestia seeks to
leverage its General Partner's expertise in competitive strategy
and capital markets to identify attractive situations within this
universe of disrupted companies. These companies are often
misunderstood by the general investing community and provide the
'price dislocations' which allows Hestia to identify, and invest
in, highly attractive risk/reward investment opportunities.
About Permit Capital Enterprise Fund
The Permit
Capital Enterprise Fund, through its management company, follows an
investing philosophy that seeks to identify securities trading at a
discount to intrinsic value. The investment approach is bottom-up
and focused on the valuation of the securities of individual
issuers. The management company's assessment of intrinsic value is
based on its own fundamental research as well as numerous sources
of publicly available information.
Contacts:
Kurt Wolf at 724-687-7842
John Broderick at 610-941-5025
1 Permission to quote from the Glass Lewis
report was neither sought nor obtained. Emphases added.
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content:http://www.prnewswire.com/news-releases/glass-lewis-joins-iss-in-recommending-gamestop-stockholders-vote-on-the-white-proxy-card-for-both-of-the-investor-groups-nominees-301070308.html
SOURCE Hestia Capital Management, LLC & Permit Capital
Enterprise Fund, L.P.