GameStop Corp. (GME) on April 1 announced that it has reached a cooperation agreement with Hestia Capital Partners LP and Permit Capital Enterprise Fund LP under which two new independent directors will be added to the GameStop Board of Directors. The two firms have an investment in GameStop and had said they would push for their nominees to be elected to the board. Instead, GameStop said it would pick one from a list of four nominees recommended by Hestia and Permit and one more with their input.
Under the terms of the agreement, the two new independent directors will be included in the company’s slate of directors standing for election at GameStop’s 2019 Annual Meeting of Stockholders. The director nominated by Hestia and Permit will join the Board’s Nominating and Corporate Governance and Compensation Committees upon election. Following the 2019 Annual Meeting, the GameStop Board will comprise 11 directors, nine of whom are independent.
Perella Weinberg Partners LP is acting as GameStop’s financial advisor and Sullivan & Cromwell LLP and Pepper Hamilton LLP are acting as its legal advisors.