Endeavor Group Holdings (EDR)
Silver Lake reported ownership of 174,114,556 Class A shares of the sports and entertainment company, accounting for 45.1% of the outstanding stock.
Proposal to Take Endeavor Private
In an Oct. 25 press release, Silver Lake revealed that it is “working toward making a proposal to take Endeavor private.” They also stated that they are “not interested in selling its shares in Endeavor…nor in entertaining bids for assets that are a part of Endeavor.”
Voting Power and Board Engagement
Silver Lake holds an additional 82.1 million and 169.4 million Class X and Class Y shares, respectively, giving them control of nearly 71% of Endeavor’s voting power. Endeavor’s board includes Silver Lake’s co-CEO Egon Durban and Managing Director Stephen Evans, who have engaged and will probably continue to engage other Endeavor directors and stakeholders regarding a take-private deal.
Seeking Undervalued Options
Endeavor President and Chief Operating Officer Mark Shapiro expressed their belief that they are “significantly undervalued” and are therefore exploring all options. The talent agency WME, owned by Endeavor, has been heavily affected by strikes that have closed production in the entertainment industry for the past several months. Despite this, Endeavor stock has gained about 6% so far this year.
Azenta (AZTA)
Politan Capital has a 7.6% stake in Azenta, owning 4,578,003 shares of the life-sciences company. Both Politan and Azenta have entered into a nondisclosure agreement as they engage in discussions regarding operations, strategy, and corporate governance. In addition, Politan submitted a notice to Azenta on Oct. 30, indicating its intention to nominate candidates, including Managing Partner and Chief Investment Officer Quentin Koffey, for Azenta’s board at the upcoming annual shareholders meeting.
Azenta recently underwent changes in its executive team, with Herman Cueto joining as the new chief financial officer on Oct. 16. Cueto succeeded Lindon Robertson, who retired.
Increases in Holdings
Dril-Quip (DRQ)
Gamco Investors increased its interest in Dril-Quip, a company specializing in equipment and technology for the energy industry. Through a series of sales and purchases in the past two months, Gamco now holds 2,417,277 shares of Dril-Quip. During this period, as Dril-Quip stock traded between $22.75 and $30, Gamco sold 29,950 shares from Sept. 5 to Oct. 25, and acquired 56,834 shares from Sept. 1 to Oct. 27. Gamco currently has a 7.1% interest in Dril-Quip’s outstanding stock. However, the shares have declined by about 20% since the beginning of this year.
Citi Trends (CTRN)
Fund 1 Investments increased its position in the apparel retailer, Citi Trends, to 973,768 shares. From Oct. 3 to Oct. 30, Fund 1 purchased a total of 119,162 Citi Trends shares at prices ranging from $21.49 to $23.67 per share. No specific reason was provided for Fund 1’s additional investment, which raised its stake to 11.4% of the retailer’s outstanding stock. However, the stock’s value has decreased by approximately 7% since the start of 2023.