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.
New Delhi, Feb 13: Condemning the prevalence of the illegal practice of “dedicating” young girls as Devadasis in Hindu society, the Supreme Court on Friday described the practice as an “evil” done to women, who were later even subjected to sexual exploitation and pushed into prostitution.
Comments
Now all like minded should unite and eradicate all the malpractices in the name of religion like :
- Caste system- Upper, lower, Dalit etc.....
- Praying multiple Gods, also praying to Devils, Ghosts
- Fortune telling like horoscope. These can be seen on many Indian TVs.
- Telling the man made stories - that God and giants fight and God is loosing.
- Madai snana in Karanataka,
- Devadasi system in most of the South Indian states
Generally, stick to Vedas and practice it. These are more convincing than man made other books.
The best thing is if you found practical and true, get and follow from other religions.
Where are Ram sena, Bajarangadal ,VHP,ABVP.......? Why not Hindu is ondu in this case. Why not crocodile tears in this case. Wake up fear real creator.
Prostitution Racket using God's Name.. Sick people. This is bcoz of false believes.. Gvt should enforce BAN on it. many poor girls are trapping under this false believes.
Would they agree with SC? May be the order has to come from Nagpur and its never going to happen.
TO those who are ARROGANT
ALLAH says in QURAN: O MANKIND, We have created YOU from a male and a female and have made YOU into nations and tribes for YOU to know ONE another. Truly, the noblest of YOU with God is most PIOUS. Truly, God is all KNOWING, All AWARE - QURAN 49:13
Islam REJECTS certain individuals or nations being favored b'cos of their wealth, power or RACE. ALLAH created human beings as EQUALS who are to be distinguished from each other only on the basis of their faith and PIETY.
Prophet Muhammad pbuh said : O people! Your God is ONE and YOUR forefather (Adam) is ONE. An ARAB is NOT better than a NON-ARAB & a NON-ARAB is not better than an ARAB, and a White person is not better than a BLACK person & a BLACK person is not better than a WHITE person EXCEPT BY GOOD DEEDS & PIETY.
Do YOU know even DALITS also should not be looked down.... If U guys continue to oppress people & did not recognise the true God surely HELL will be the destination. Please READ what God speaks its not just for high class.. everyone can access to GOD's word.
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