Massimo campaigners demand ‘basic’ information on proposed deal | Wilnesh News

Quentin Koffey of Politan Capital sent in letter arrive field On Wednesday, Chief Executive Joe Kiani requested information about the health tech company’s proposed plans spin off its consumer business.

Coffey, who won a seat on Masimo’s board through a proxy fight last year, said that despite his “repeated requests,” he “did not receive anything as basic as the name of an expected joint venture partner” after several weeks. spin off.

Masimo acquired consumer audio company Sound United for $1 billion in 2022, a deal that caused its stock price to drop 37% on the day of the announcement. The acquisition set off Politan’s first agency fight at the company.

Last month, Masimo said it would spin off its consumer business, spurring gains on the stock.

Coffey said in the letter that Masimo management had asked “the directors to sign a confidentiality agreement” to obtain information about the transaction. Coffey, who is preparing for a second proxy fight to take full control of the Masimo board, warned Chiani that he would take legal action if the company delayed or denied his request.

The campaigner is also seeking information on any financial and leadership opportunities Chiani has been promised in the spin-off company. Masimo’s proposed spinoff business unit is expected to generate $700 million to $780 million in revenue this year, according to the company’s latest guidance.

Masimo Chief Financial Officer Micah Young said on a conference call with analysts on Tuesday that senior management was working “diligently” and would present findings on the deal structure and joint venture partners to the full board in the coming months.

A spokesman for Politan declined to comment beyond the content of the letter. Representatives for Masimo could not immediately be reached for comment.

Politan is Masimo’s second-largest shareholder, with a stake of about 9%, behind Fidelity. Kiani is the largest individual investor, owning 7.5% of the company.

Masimo shares are up 2.4% this year, closing Wednesday at $120.02. It fell by 49% in 2022 and by another 21% last year.

watch: Masimo CEO talks potential spin-off and proxy fight