Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.
The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.
“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”
NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.
NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.
Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.
Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.
Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.
Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.
Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.
NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.
NMC said Mark Tompkins will continue as the company’s sole chairman.
"Smriti Irani's convoy rammed into our car. She came out. I begged her for help but she left," Dr Ramesh Nagar's daughter Sandili said.
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Kahani Ghar Ghar Ki actor has become the Tension Galli Galli Ki
drama queen, MERA DESH MAHAN,
I fear the honest indians who vote such politicians to think before YOU give your valuable votes.. Almost most of the Sanghi leaders are openly Lying to the PUBLIC without hesitation and YOU expect them to SAVE U ... Its impossible..if they are involved in continues LIES then dont expect them to be saviour of your religion... NOTE this and dont fall trap to their Crocodile cry for religious sentiments... its only FEKU ... There is a evil agenda of Sangha to bring back DEVADASIS and SATI and rule over U.
How can she help to the victim,when her heart itself refused to do it.Please do not blame the Innocent Human resources and development indian highly educated minister.
All bad characters are lie inside her.
Selfish, liar, go to any extent for money,....etc.
This is the real face of All Sanghis. Words and deeds pole apart. Afterall she is MANU-SMRITI IRANI.
She is so selfish! People thought actress will have good heart, unfortunately she doesn't...
Real face of NARAHANTAKI ........she do not know the difference between REEL life and REAL life..... Bechari fas gayee, trapped,, worshipper of Durga doing like this....
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