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.
Comments
Elite Indian nationalism defined: Every elite Indian can give his/her life for learning English if he/she needs to live in New York or London. But no elite Indian will sacrifice even a penny for learning Kannada if he/she needs to live in Bengaluru. Nationalism of jokers is always like that. (There are some rare exceptions to that, of course).
Look at how much useful English has been to India: India is one of the worst countries in education; the most starved country; suffers trade losses of more than 40 billion US dollars each year with China alone (I hope you know China doesn't teach in English); ranks 150th in per capita exports; administratively the most stupid one because administration is being carried out in language whish people don't understand; Also read this quotation from a worldwide study carried out by UNESCO, ‘What seems to be standing in our way is a set of myths about language and learning, and these myths must be revealed as such to open people’s eyes. One such myth is that the best way to learn a foreign language is to use it as a medium of instruction. (In fact, it is often more effective to learn additional languages as subjects of study.) Another is that to learn a foreign language you must start as early as possible. (Starting early might help learners to have a nice accent, but otherwise, the advantage goes to learners who have a well developed first language.) A third is that the home language gets in the way of learning a foreign language. (Building a strong foundation in the first language results in a better learning of additional languages.) Clearly, these myths are more false than true, yet they guide the way policymakers tend to think about how speakers of other languages must learn dominant or official languages.’ I will like to discuss with you further Mr. BigZero. If you agree, mail me at [email protected]
Can anything be more anti-national and educationally more stupid than what these 'Crazy' Board of Secondary Education people are saying? Kindly give your arguments if your answer is in Yes. Today itself, I stated in my TV interview that I don't find any education Board educationally as illiterate as the Indian 'Crazy' Board of Secondary Education. This is one more evidence of their illiteracy. I have mailed to the CBSE sataraps about their illiteracy on educational matters. But they never replied.
ಕರ್ನಾಟಕದ ಮಾತೃ ಭಾಷೆಯನ್ನು ಉಳಿಸುವತ್ತ ಸರ್ಕಾರದ ಹೆಜ್ಜೆ. ಸರ್ಕಾರಕ್ಕೆ ಅಭಿನಂದನೆಗಳು....
I find this interesting: "It is not a prestige not to learn Kannada...". Unfortunately,
many "elites" speak in other Languages - particularly in English - to show off.
There are problems with Kannadigaas too - we can't speak Kannada
without 80% English in it....
Court must be moved to knock out a ridiculous order. Language is correctly the choice of schools, parents and students. And students should not be burdened to learn languages that will have no use to them.
Karnataka govt. should close these schools if they refuse to comply.
When Hindi & English are mandatory and they did not make a hue and cry against these, what is their problem teaching Kannada in Karnataka?
UP-Bihar's Hindi language mandatory in Karnataka is OK, but not Kannada? What kind of nonsense is this?
@Ravi: Very correct and logical. Moreover, Karnataka and Kannada have been
taken for granted, by most of the people from outside.
People who don't want to learn Kannada in Karnataka and want to treat this place just as a safe haven for jobs, property and weather should leave the state. We have enough freeloaders here from all parts of the country resulting in the chaos in the city. Its time for the Govt. and Courts to tighten the strings.
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