Video game and electronics retailer GameStop (GME - Get Report) on Monday announced it reached an agreement with two of its major shareholders on adding two new independent directors to its board, a day ahead of the company's quarterly earnings announcement.
In a press release, GameStop said it has reached a "cooperation deal" to appoint an independent director from the candidates nominated by investment management firms Hestia Capital Partners and Permit Capital Enterprise Fund - two of the company's larger stakeholders.
And "as part of the Board's ongoing refreshment and search efforts, the Board will appoint an additional independent director who will be selected by the Board in consultation with Hestia and Permit," GameStop said.
The two new directors are expected to join the board before April 30 ahead of the company's annual general meeting. As part of the agreement, Hestia and Permit said they will withdraw their own director nominations and back all of the company's director nominees.
GameStop last month said it plans to redeem $350 million in unsecured senior notes scheduled to mature in October 2019 and return the capital to shareholders via a quarterly dividend as well as a new $300 million share repurchase program.
It also appointed George Sherman as GameStop's new CEO and a member of the board, effective April 15.
GameStop is expected to announce earnings of $1.60 a share when it releases its quarterly results Tuesday, according to the median forecast of analysts surveyed by FactSet. Shares of GameStop were little changed at $10.23 on Monday.