Arex Capital says Enhabit sale ‘only acceptable outcome’

Arex Capital Management, together with its affiliates, the owners of approximately 4.7% of the shares of Enhabit, issued an open letter to the company’s board of directors, in which the firm states in part: “Poor communications have again caused unnecessary and substantial harm to Enhabit’s shareholders. Somehow, the company took the simple act of proactively attempting to streamline their strategic alternatives review process and created confusion for investors-with the company’s initial 8-K on Monday failing to even mention the process! Last night’s clarification was better but shouldn’t have been necessary… The value of the company’s highly strategic assets has been obscured by underwhelming execution and bloated overhead. Thankfully, Enhabit’s strategic alternatives review process should ultimately result in a sale. We strongly emphasize to the Board that there should be absolutely no question that the highest bid received in a full and fair auction is Enhabit’s fair value. A sale of the company is the only acceptable outcome for this process.”