Meister’s Corvex Doubles Stake in Kindred
Keith Meister’s Corvex Management doubled its stance inward Kindred Group, according to a regulatory filing issued by the Swedish online gaming company.
The hedge fund initiated a wager of to a greater extent than 5% inward Kindred inward February, nearly doubling the size of it of that investment inwards less than iii months.
According to the notification, Corvex Management LP. holds 10.12% of the shares and voting rights in Kindred as of 25 April 2022. Corvex Management LP. serves as investiture advisor to investment pecuniary resource and accounts which have the securities reported in the notification,” according to the Kindred filing.
Corvex Gaming History
Corvex is an activistic investor, import that when the steadfastly takes equity stakes in companies, it usually pushes for some form of change, live it inwards the constitute of asset sales, spinoffs, increased shareholder rewards or other ideas.
Meister’s steady has documented success in the gaming industry, having joined the get on of MGM Resorts International (NYSE:MGM). He was among the investors that pushed the gaming accompany to bring forth cash in past divesting its tangible acres assets. The fudge monetary fund was successful inwards that accusative and it culminated inwards MGM Growth Properties (NYSE:MGP) — MGM’s primary landlord — beingness acquired by VICI Properties (NYSE:VICI). That deal closed in(p) yesterday.
In February, MGM and Barry Diller’s IAC/InterActiveCorp (NASDAQ:IAC) purchased $405 gazillion worth of the gaming company’s shares from Corvex, whittling the put off fund’s wager in the gambling casino operator to 1.5%. Meister remains on the board of the company.
At the death of 2021, the sidestep fund also owned shares of sports betting data provider Sportsradar (NASDAQ:SRAD).
What Corvex Might Want with Kindred
In some cases, activist investors herald what they want with a society immediately after investment inwards the firm, but that hasn’t happened with Covrvex and Kindred.
It’s not forthwith top what convert — if any — Corvex is angling for at Kindred. It’s not a stretchability for Meister’s investiture business firm to add a posture inwards a company similar Kindred because he’s previously spoken bullishly on the iGaming and sports betting opportunity sets.
In add-on to Corvex beingness quiet near its plans for the Kindred investment, the hedge fund’s involvement inward the gaming companionship isn’t getting often attention inwards the mainstream financial media remote of Sweden.
Kindred has a step inwards the US market, though that concern isn’t yet delivering desired results – something that’s not potential lost on Meister. More than half the company’s first-quarter revenue was generated inwards Europe.
Kindred has antecedently been rumored to follow a takeover target, but goose egg materialized on that front. The keep company has its possess history of acquisitions and it remains to be seen if Corvex pushes for Kindred to sell itself or buy a rival.