By Svea Herbst-Bayliss
NEW YORK (Reuters) -Six Flags Entertainment is adding an executive from activist hedge fund Sachem Head Capital Management to its board at a time the theme park operator is facing pressure from several investors to perform better.
The company said on Friday that it appointed Sachem Head partner Jonathan Brudnick to the board, expanding the board size by one to 13. At the end of the year, when two directors retire, the board will have 11 members. He will also join the nominating and corporate governance committee.
Six Flags, which has a market capitalization of roughly $2.1 billion, saw its shares lose half of their value this year when rainy weather at the start of the summer kept visitors away from its parks. The stock price closed at $21.26 on Thursday and has lost 55.5% since January.
Sachem Head owns nearly 10% of the company and began establishing its position in the second quarter. The sagging share price has also attracted other investors who have been pushing the company to make changes to lift its stock price.
Last month activist investor Land & Buildings, which owns a 2% stake in the company, again urged the company to spin out its real estate into a real estate investment trust that its fund manager, Jonathan Litt, thinks could trade at higher multiples. The hedge fund first floated the idea of selling off the real estate in late 2022.
Six Flags Entertainment was created last year when Six Flags merged with Cedar Fair.
For Sachem Head this is the second board seat the firm has scored in the last four weeks after Performance Food Group invited Sachem Head founder Scott Ferguson onto its board shortly after the firm had said it wanted four seats, including one for Ferguson.
(Reporting by Svea Herbst-Bayliss; Editing by Chizu Nomiyama )
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