2023-07-17 15:19:25 ET
Cano Health ( NYSE: CANO ) rose 4.3% amid a renewed call from a shareholder group, consisting of three former directors, for the company to sell non-core assets and move forward with corporate governance changes.
The shareholder group, which collectively controls ~35% of the equity of Cano, issued the new letter to shareholders on Monday. The group consists of Elliot Cooperstone, Lewis Gold, and real estate billionaire Barry Sternlicht. The trio served on the company's board until the spring.
The letter comes after the primary care center operator announced last month that Marlow Hernandez agreed to step down as chief executive officer and Cano appointed chief strategy officer Mark Kent as its interim CEO while it conducted an external search for a permanent successor.
"The Board, once properly reconstituted, needs to publicly commit to supporting Mr. Kent and his team in accelerating the divesting of Cano’s non-core assets in order to support debt reduction and a more focused strategy that targets the high-growth Florida market," the holder group wrote in its letter.
The shareholder group originally issued its call to replace Hernandez as CEO in April and to sell non-core assets. The non-core assets could be valued at about $300 million to $400 million, according to a Bloomberg report at the time, which cited people familiar with the matter.
More on Cano Health
- Cano Health: CEO Departure Could Be Constructive, New Skipper More So
- Cano Health: Key Shareholder Meeting Looms, Stock Undervalued But Volatile
- Cano Health: The Near Term Is Dismal, But The Long Term Is Bright
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Cano Health gains amid renewed call for asset sales from shareholder group