(Reuters) -Activist investor Engine Capital sent a letter to Acadia Healthcare’s board on Wednesday asking the company to explore a potential asset sale and add new directors to its board.
Shares of Franklin, Tennessee-based Acadia Healthcare rose 4.5% premarket.
Engine Capital, which owns about a 3% stake in Acadia, said the healthcare service provider has sustained negative returns due to ineffective execution of its reorganization in 2022.
The activist investor urged for a major overhaul of the company’s governance, asking for a board refresh, cost cutting, and sale of assets to repurchase undervalued shares.
The company did not immediately respond to Reuters’ request for comment.
(Reporting by Christy Santhosh in Bengaluru; Editing by Leroy Leo)
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