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
KAR-NATAKA...
:(
Most of the picture shows they are laughing also the police.. Which raises question of understanding!
Der was a statement frm our Dept regarding d stiff action. Is dis called stiff action?
Stiff action wud b a reality if scenario was different, if muslims was protest without permission.
Double standard
why laathi is not working here ??
Enough drama...Dirty politics...
Wah eth maryadeyna janaklu.. and oh my deware what a huge huge dozens of crowds.. oh my deware i cant even count how many they are :D
You foolish guys, Tippu did not destroy temples but in fact he built them and renovated them all....
In fact you destroyed babri masjid a few years back....how bad you guys are....moreover killing innocent muslims at that time and as well during modi's regime in Gujrath...bad people....
Tippu Zindabad!
How they laugh each other like children are playing. this is nothing else they know each other very well because both are chaddis.
In delhi how they drag Najeeb's mother .
well done BJP protest till end.
Kateel is a elected Member of Parliament. He should keep it in mind that all community from his constituency voted for his current position.
Every indian can protest. Then why Mr. Kateel is not participating in Muslim or Christian community protest?? Amazing
discrimination.
Wa/ Wa Master Kateel you Criminal looters thought to do some Loot Pat because of the Great Warriors Name!!!!!! Bap Ray Bap Which Part of the world you are in??? when you Criminal Looters thinking what?? we all understand you are all workless and how long you can leave this type of Life???? what you think being MP??
Never ever see like you Buffoon!!!
\Every Dog has its own day Kateelanna\"
Jai Hoo Siddanna,
Jai Hoo Parmarashwaranna."
let them do jayanthi or kabur whats the problem for u guys. please leave the place and queue up in the bank to exchange the notes.
Most of pics.. laughing each other. Protesters & Police.
conspiracy between Protesters and Police \YOU PRETEND LIKE BEATEN UP AND I PRETEND LIKE BEATING UP\""
Why police released all of this Gundas. Police should have done lati charge and put all of them behind bar under gunda act. Instead of carrying them like babies police could have beaten them with lati. Because of these anti national elements ad terrorists our india is in danger. Please punish them all including our useless MP.
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