(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)

See Full Page