MIG Capital Pushes Groupon for a Board Seat

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Remember Groupon? Oh, they’re still around?

MIG Capital is pushing Groupon to push its CEO Richard Merage on the shopping-deal provider’s board of directors. The activist fund with $1 billion in AUM owns 5% of Groupon stock. It wants to push Merage on the docket for a vote Groupon’s 2020 annual meeting.

“Groupon has been in dialogue with MIG Capital and is aware of its interest in having Richard Merage, Portfolio Manager and CEO of MIG, join the Groupon Board of Directors,” MIG Capital said in a statement. “The Board is evaluating Mr. Merage as a Director candidate as part of its regular assessment of the Board’s needs and makeup.”

Groupon was MIG Capital’s largest holding as of Sept. 30.

Meanwhile, Merage is best known for his family firm Chef America, which sold Hot Pockets to Nestle in 2012 for $2.6 billion.

MIG Capital and Other Activist Deal

According to an SEC filing, MIG isn’t seeking anything else from the firm. It doesn’t have any plans to target Groupon, but it could discuss future business plans and operational strategies.

Groupon also faced activist pressure throughout 2019. Some investors had further pushed the company to merge with Yelp or another e-commerce firm like Amazon.com.

In 2019, Chapman Capital also said it had contacted shareholders to push Groupon management to buyback $100 million in stock or push the firm into a strategic partnership. Krupa Global Investments in Europe also announced a position in Groupon in September and said it was would support Chapman’s position.

Related: Activist Update: Jonathan Litt Wants to Create a Casino REIT Colossus

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