AREX Capital Sets the Record Straight Regarding Enhabit’s Misleading Assertions

Rhea-AI Summary

AREX Capital Management, owning 4.9% of Enhabit’s shares (NYSE: EHAB), has issued a letter urging stockholders to support its nominees on the WHITE proxy card in the 2024 Annual Meeting. AREX criticizes Enhabit's financial and operational performance and emphasizes the need for new leadership to navigate the challenging market. AREX believes their nominees are best positioned to rehabilitate the company and ensure effective oversight and accountability to stockholders.

Positive

• AREX Capital Management owns 4.9% of Enhabit’s shares, showing strong investor interest.
• AREX is actively pushing for boardroom changes to improve Enhabit's management and performance.
• Nominees are presented as capable of leading and rehabilitating the company.

Negative

• Enhabit has shown staggering operating and financial underperformance.
• The current board continues to refuse engagement with AREX, indicating governance issues.
• The need for a vote for new nominees suggests existing leadership is ineffective.

Reiterates Need for Boardroom Change This Year Following Enhabit’s Staggering Operating and Financial Underperformance

Believes Enhabit’s Stockholders Deserve Leadership That Can Navigate Challenging External Environment

Disappointed by Board’s Continued Refusal to Engage

Urges Stockholders to Vote FOR the AREX Nominees—Who are Best Positioned to Rehabilitate Enhabit—on the WHITE Proxy Card

NEW YORK--(BUSINESS WIRE)-- AREX Capital Management, LP (together with its affiliates, “AREX” or “we”), the beneficial owner of approximately 4.9% of the outstanding common shares of Enhabit, Inc. (NYSE: EHAB) (“Enhabit”), today issued an open letter to its fellow stockholders regarding the misleading statements in Enhabit’s recent communications.

The full text of the letter can be found here: AREX Sets the Record Straight.

We believe voting for all seven of AREX’s nominees on the WHITE proxy card at the upcoming 2024 Annual Meeting of Stockholders is the best way to ensure that Enhabit can remain a leader in the home health and hospice industries with a board of directors that is capable of effective management oversight and is accountable to stockholders.

Stockholders are encouraged to visit www.rehabEHAB.com for additional information.

About AREX

AREX Capital Management, LP is a value-oriented investment firm based in New York City. AREX takes a long-term, opportunistic approach to investing and focuses primarily on publicly traded companies with significant, unrealized potential.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617861603/en/

Investor Contact



Saratoga Proxy Consulting

John Ferguson

(212) 257-1311

rehabEHAB@saratogaproxy.com



Media Contact



Longacre Square Partners

Greg Marose / Charlotte Kiaie

(646) 386-0091

rehabEHAB@longacresquare.com

Source: AREX Capital Management, LP

FAQ

Why is AREX urging stockholders to vote for its nominees for Enhabit?

AREX believes its nominees are best positioned to rehabilitate Enhabit and ensure effective oversight and accountability.

What percentage of Enhabit’s shares does AREX Capital Management own?

AREX Capital Management owns approximately 4.9% of Enhabit’s outstanding common shares.

What issues did AREX highlight about Enhabit?

AREX highlighted Enhabit's staggering operating and financial underperformance and the current board’s refusal to engage.

When is the vote for the new nominees taking place?

The vote for the new nominees will take place at the 2024 Annual Meeting of Stockholders.

What is the significance of the WHITE proxy card in the context of AREX’s letter?

The WHITE proxy card is the voting card that AREX is urging stockholders to use to vote for its nominees.