HG Vora is not an activist investor, but has shown to be active value investors when necessary. It is an event driven, value-oriented fund that was founded in 2009 by Parag Vora. HG Vora is part of a new breed of activism – deep value investors who have experience being activist when necessary, but do not use it as their prime strategy. Activists like this are often less threatening and well-respected among boards and institutional investors.On Jan.
The company did not outright reject Staples' proposal, but rather suggested a joint venture that would maximize synergies and efficiencies while reducing the regulatory risk of pursuing a retail-only transaction. HG Vora's SEC filings indicate that it was a passive investor until Jan. 19, when presumably it started talking to the company about joining the board. The fact that a settlement was reached on Jan. 25 shows that this was very amicable and not only something HG Vora wanted, but also something the company felt was important.
HG Vora clearly sees further value from here or else they would have walked away from this investment with a 126% return in less than six months. Taking a board seat at this point in time shows not only that they are confident that there is more value, but that they are long term investors who focus on shareholder value.