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HomeBusiness NewsOwl Creek Urges Cano Well being Board To Think about Potential Sale

Owl Creek Urges Cano Well being Board To Think about Potential Sale

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Owl Creek Asset Administration L.P. despatched a letter to Cano Well being Inc CANO board strongly encouraging the corporate to pursue strategic alternate options, together with a possible sale. Owl Creek owns round a 3.75% stake in Cano.

In accordance with the letter, the asset administration says, “the previous 12 months’s curler coaster of accounting points has shaken our confidence. We really feel that Cano’s continued development would require a bigger and stronger vertically built-in associate with entry to the capital wanted to execute the corporate’s marketing strategy.” 

“Cano is near attaining its 2023 targets a 12 months early. We imagine these outcomes validate our view in the marketplace alternative and the corporate’s skill to seize a significant portion.”

“Sadly, Cano has persistently traded at a reduction to its friends as a consequence of its SPAC heritage and heavy focus within the South Florida market.”

Owl Creek compares Cano with Oak Avenue Well being Inc OSH and Agilon Well being Inc AGL.

Oak Avenue and Agilon have an enterprise worth almost thrice the excessive finish of their 2022 income steering of $2.145 billion and $2.635 billion, respectively. Regardless of Cano guiding to $2.85-$2.90 billion for FY22, it trades at underneath 1.3x.

Just lately, Amazon.com AMZN introduced to accumulate 1Life Healthcare Inc ONEM for $3.9 billion, paying over thrice this 12 months’s anticipated income. CVS Well being Corp CVS was additionally an get together for 1Life Healthcare. 

CVS has said since late final 12 months that they’ve effectively over $10 billion to deploy in direction of strategic initiatives, with value-based care on the prime of the checklist. 

CVS has additionally been named a suitor for Signify Well being Inc SGFY, with Amazon, UnitedHealth Group UNH, and Possibility Care Well being Inc OPCH within the home-health-services supplier. 

Associated: Amazon’s Deep Pocketed Bid For Signify Will Drive Up Acquisition Costs, Says This Analyst.

If Cano had an enterprise worth equal to a few occasions this 12 months’s anticipated income, that might enhance the valuation by greater than $4.5 billion, equating to a share worth of roughly $14.

Value Motion: CANO shares traded 5.77% greater at $5.87 premarket on the final test Tuesday.

Picture by Tumisu from Pixaby

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