Activist AREX Capital wins one seat in proxy fight at Enhabit
Changes sourcing in lead, adds new details throughout
By Svea Herbst-Bayliss
July 25 (Reuters) - Enhabit EHAB.N investors elected one of AREX Capital Management's director nominees after the activist investor called on them to replace seven of the home health and hospice provider's directors to help improve financial performance.
Enhabit said on Thursday shareholders added Mark Ohlendorf to the board and re-elected eight of the company's nine legacy directors, including the chief executive officer and two directors who joined last year when Enhabit reached an agreement with another activist investor.
Reuters first reported AREX won one seat and that Ohlendorf, who has experience as a public company chief financial officer, was chosen. He will replace Susan LaMonica who joined Enhabit's board as an independent director in 2022.
Enhabit's fight with AREX is one of only a handful of activist investors' campaigns to have made it to a vote this year, underscoring many investors' and companies' preference to reach agreements for board seats and other concessions before shareholders weigh in.
While Enhabit has many hedge fund investors who were thought to back AREX, it also counts the three main index funds - BlackRock BLK.N, Vanguard and State Street STT.N - as big shareholders. In this vote those three sided with management's candidates, sources familiar with the preliminary vote tally said.
These investors ignored the recommendations of proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis who had urged investors to elect three AREX nominees, arguing the company needed more expertise in the home health and hospice business and public company financial reporting.
Enhabit's share price has tumbled roughly 60% since it was spun off of post-acute healthcare services provider Encompass Health EHC.N in July 2022. It climbed nearly 10% in the last five days and was up nearly 4% in midday trading on Thursday.
AREX, which owns a 4.9% stake in Enhabit, urged management last year to immediately start a strategic review. Enhabit in May decided to continue as an independent company and urged investors to stick with its directors now, arguing big changes could jeopardize recent improvements.
In 2023, the company reached a settlement with Cruiser Capital and Harbour Point Capital Management and appointed two new directors to the board.
Reporting by Svea Herbst-Bayliss
Editing by Chris Reese
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
