Joe Chiani, CEO, Masimo

Scott Mill | CNBC

Quentin Coffey of Politan Capital sent a a letter to Massimo CEO Joe Kiani on Wednesday, requesting information on the health technology company’s proposal spinoff of its consumer business.

Coffey, who won a seat on Masimo’s board last year through a proxy fight, said that despite his “repeated requests” he had “not received such basic and fundamental information as even the name of the intended JV partner” weeks after the company first announced it was exploring a split.

Masimo acquired consumer audio company Sound United in 2022 for $1 billion, a deal that sent its stock price down 37% on the day of the announcement. The purchase was the catalyst for Politan’s first battle at the company.

Last month, Masimo said it would spin off its consumer business, fueling a rally in the stock.

Coffey said in his letter that Masimo’s management had requested that “directors sign a non-disclosure agreement” to gain access to information surrounding the deal. Coffey, who is gearing up for a second proxy fight to gain full control of Massimo’s board, has warned Chiani that if the company delays or rejects his request, he will take legal action.

The campaigner is also seeking information on any financial and leadership opportunities promised to Kiani in the secession. The business units that Masimo is proposing to spin off are expected to generate between $700 million and $780 million this year, according to the company’s latest guidance.

Masimo CFO Micah Young said on a call with analysts on Tuesday that executives are working “hard” and will present their findings on the structure of the deal and the joint venture partner to the full board in the coming months.

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

Politan is Masimo’s second-largest shareholder, with about 9% ownership, trailing only Fidelity. Kiani is the largest individual investor with a 7.5% stake in the company.

Shares of Masimo are up 2.4% this year, closing Wednesday at $120.02. They fell 49% in 2022 and another 21% last year.

WATCHING: Masimo CEO on potential split and proxy fight