‘Unrest in Dakshina Kannada may affect investments flow into Karnataka’

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.

Udupi, July 23: A 70-year-old woman, who had tested positive for coronavirus, passed away last night in Udupi taking the district’s covid-19 death toll to 12.

The deceased was a resident of Chantharu in Brahmavar. She was an asthma patient. For past few days, she was suffering from cold and fever. 

Her throat swabs were sent for testing and the report came positive last evening. She breathed her last at home even before being shifted to hospital. 

The woman has two daughters and both of them are married. Due to the fear of virus, none of her relatives were ready to touch her body.

Meanwhile, Dr Premananda K of district health department reportedly sought help of the activists of Popular Front of India (PFI). 

Under the supervision of PFI’s medical wing in-charge Muneer Kalmadi, the body was shifted to the district hospital with all necessary precautionary measures.

Bengaluru, Apr 13: Fifteen new positive cases of coronavirus have been confirmed in Karnataka, taking the total number of affected in the state to 247, the Health department said on Monday.

"Fifteen new positive cases have been reported from last evening to this noon.... Till date 247 COVID-19 positive cases have been confirmed. This includes 6 deaths and 59 discharges," the department said in a mid-day situation report.

Among the 15 new cases thirteen are contacts of patients already tested positive, while one from Dodabballapura in Bengaluru Rural is with a travel history to Delhi, the other from Bengaluru city has Severe Acute Respiratory Infection (SARI).

Among the 13 contact cases tested positive four are from Hubballi in Dharwad district, three each from Malavalli in Mandya district and Raibag in Belagavi, two each from Bidar, and one from Mudhol in Bagalkote district.

Three out of 15 new cases are children- a 8 year-old girl from Malavalli in Mandya, 16-year old girl from Bidar and 14-year old boy from Raibag in Belagavi.

From across the state most number of infections have been reported in Bengaluru with 77, followed by Mysuru (48) and Belagavi (17).

Those discharged include 27 patients from Bengaluru, nine from Mysuru, seven from Dakshina Kannada, six from Chikkaballapura, three from Davangere, two each from Uttara Kannada and Kalaburagi, and one each from Udupi, Dharwad and Kodagu.

Among the dead, two are from Kalaburagi and one each from Bengaluru, Bagalkote, Gadag and Tumakuru.