Embarrassed B R Shetty helplessly resigns from Abu Dhabi’s ailing NMC Health

News Network
February 17, 2020

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

sunita kejriwal
 - 
Monday, 17 Feb 2020

BRS could not fool all the people all the time!

 

Bhakth
 - 
Monday, 17 Feb 2020

Illegal way of earning will not last for long. 

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 25,2020

Bengaluru, Jul 25: The Karnataka government on Saturday announced a waiver of crematorium fees for those who succumb to the COVID-19 infection in Bengaluru and said the city civic body would bear the cost.

It said that from now on, families of the COVID deceased need not pay any fees fixed by the city civic body- Bruhat Bengaluru Mahanagara Palike (BBMP)- across 12 electric crematoriums in the city.

"There were reports in the media about difficulties faced in performing the last rites of those who died due to COVID-19 infections. Aimed at resolving those difficulties, certain decisions have been taken," Revenue Minister R Ashoka said.

He told reporters here that BBMP had fixed Rs 250 as the cremation fee, Rs 100 for the ash collection pot and Rs 900 for the bier (bamboo stretcher on which the body is carried), all of which have been waived for COVID deaths.

"So it will be a waiver of Rs 1,250 per cremation. The BBMP will bear this cost," he added.

Ashoka also announced Rs 500 per body incentive for the personnel who conduct the last rites of COVID victims.

"This is in recognition of their services at a time when family members of the deceased are not ready to touch the body and not ready to take the body in some cases," he said.

Noting that the government has identified 23 acres of land at five places around Bengaluru for burial or cremation of COVID victims, Ashoka locals in all these areas are protesting against it.

Appealing to the people for cooperation during these difficult times, he said the government's intention was to ensure respectful burial or cremation for the deceased.

"Obstructing it is not right, it is not Indian tradition," he said.

Pointing out that it takes almost a day's time for a COVID victim's body to be handed over for burial or cremation, he said "scientifically, according to experts and doctors, the virus will not remain alive for more than three hours.

...Also, bodies are either burnt or buried eight feet below. So there will not be any problem for those living in nearby areas and it will not spread infection. Cooperate with humanity," he said.

"These lands identified are for all religions and communities and once the pandemic subsides, can be used for other deaths as well," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 21,2020

Udupi, Jul 21: Udupi Court complex has been sealed down for two days for sanitisation after a judge tested positive for Covid-19, a source said on Tuesday.

The Covid cases in Udupi district which had reduced recently are once again seeing a spurt. On Monday, as many as 98 have tested positive taking the total cases in the district to 2,321.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 19,2020

Chikkamagaluru, Feb 19: A 31-year-old homemaker was murdered and valuables, including 100gm of gold and 2kg of silver, were reported missing from her house in Kadur town of Chikkamagaluru district late Monday evening. Her 11-month-old son, who was with her at the time of the attack, had a miraculous escape.

Police said Kavita's husband Dr Revath was away in his clinic in the town's Kadur-Birur road along with their first son, 5. Kavita, who has done MA and from Udupi, and the dentist married seven years ago.

District superintendent of police Harish Pandey has formed a special team to probe the incident that took place in Lakshmish Nagar in the town.

According to police, Kavita spoke to her husband around 6.45pm on Monday and didn't answer his subsequent calls, triggering a strong suspicion in him that something was amiss. He called his relatives living nearby to check on his wife. The relatives rushed to the house only to find the main door locked.

Since Kavita didn't answer the doorbell, they force-entered the house from the rear door and found her in a pool of blood. She was taken to a private clinic where doctors declared her brought dead.

Police said the woman was killed by a sharp weapon by slitting her throat between 6.45pm and 8.15pm. The rooms and almirahs had been found ransacked. At least 100gm gold ornaments, 2kg of silver and cash were missing from the house.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.