Digital Assets Report

Newsletter

Like this article?

Sign up to our free newsletter

Arex wants sale of home health and hospice provider Enhabit

Related Topics

Activist hedge fund Arex Capital Management wants home health and hospice provider Enhabit to put itself up for sale and begin a strategic review aimed at reversing an almost 50% slide in its share price since the business was spun off from Encompass Health Corp in July 2022, according to a report by Reuters.

Activist hedge fund Arex Capital Management wants home health and hospice provider Enhabit to put itself up for sale and begin a strategic review aimed at reversing an almost 50% slide in its share price since the business was spun off from Encompass Health Corp in July 2022, according to a report by Reuters.

By comparison, the S&P 500 and Russell 2000 indexes have seen gains of 16% and 11% respectively, over the same period.

Enhabit is reportedly already interviewing two board directors proposed by Arex, which owns a 4.5% stake in the company, but in a letter to the company’s chief executive officer and board dated 13 June, Arex has urged it to consider more drastic action. 

“The Board should fully explore the potential delivery of substantial and fair value to shareholders through a sale of the Company,” Arex wrote adding that its believes the company could fetch a “potential sale price range of $30-$40 per share, more than triple Enhabit’s current share price.” 

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured