Ancora Holdings wants Hasbro to Sell Entertainment One unit

Activist investor Ancora Holdings said in a letter that toy-maker Hasbro would consider selling all or part of Entertainment One's units to reduce debt and replace long-standing directors on the board. 

Investors said in a letter that Ancora holds about 1% of Hasbro's stake, and the sale of Entertainment One could raise the company to up to $2 billion, leading to tax incentives.

The move came after activist investor Alta Fox Capital Management last week expelled Hasbro's chairman and two other directors, calling for company changes, including a spin-off of the Wizards of the Coast unit.

Ancora has asked Hasbro's board to reassess the tax-exempt spin-offs of the Wizards of the Coast unit that publishes Dungeons & Dragons and Magic: The Gathering as its shares are trading around a 75% discount to intrinsic value, according to its analytics.

Monopoly maker Hasbro will expand into the lucrative infant and preschool market by buying Entertainment One for about $4 billion in cash in 2019 and accessing popular TV shows such as Peppa Pig and PJ Masks.