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.
coastaldigest.com news network
July 7,2020

Mangaluru/Udupi, Jul 7: Coastal districts of Dakshina Kannada and Udupi crossed 100 plus Covid19 positive cases mark again on Tuesday, after slipping to double digit cases for a day on Monday. While Dakshina Kannada accounted for 83 of these cases and one death, Udupi tallied 28 fresh cases taking the combined tally of new cases to 111.

DK stood second behind Bengaluru Urban that recorded 800 out of 1,498 new cases that the state recorded for the day.

In all, 48 primary contacts testing positive led DK district’s spurt of 83 cases, Sindhu B Rupesh, deputy commissioner, said. Influenza like illness (ILI) cases accounted for 20 of the 83 cases, one each were diagnosed with severe acute respiratory illness (SARI) and from pre-surgery sample collected before delivery, two had history of inter-district travel, three each were cases of random, pre-surgery samples and source of infection being traced.

A 65-year-old male from Moodbidri who had co-morbid conditions including diabetes, pneumonia and heart ailment succumbed to the pandemic during the day. He was admitted for treatment at a private hospital on July 3. With this, the death toll due to coronavirus in DK district rose to 26 and two of them are due to non-Covid reasons including a case each of suicide and a person succumbing to liver cirrhosis and they tested positive post death.

G Jagadeesha, deputy commissioner, Udupi district said the 28 new cases took the total positive cases in Udupi to 1390. With 1182 patients discharged and three deaths, Udupi as on date has 205 active cases. Those who tested positive include KSRTC driver who travelled to Bengaluru, vegetable vendor at Adi Udupi market and people with travel history to Tumakuru, Bengaluru, Mumbai, Dubai and two even from DK and rest primary contacts, DC said.

Health authorities in DK district also discharged 99 patients during the day to keep their active cases tally at 650. The two districts combined have 855 active cases as on date. As per revised protocol issued by the department of health and family welfare, the district administration also permitted 28 patients with mild symptoms to undergo home isolation while the rest are being treated either at private hospitals or at the designated Covid19 hospital for DK.

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 15,2020

Bengaluru, Jul 15: Toyota Kirloskar Motor (TKM) has announced temporary halt of production at its plant in Bidadi, which is on the outskirts of Bengaluru.

“Halting production will be from July 14 (second shift) to July 22 (first shift) and this is in accordance with the directives issued by the Government of Karnataka as well as to support the Govt. in their constant efforts to flatten the curve of the rising Covid-19 positive cases in Karnataka,” a statement from the company said.

Bengaluru Urban and Rural, and other districts are, are under lockdown from 8 pm on July 14 to 5 am on July 22.

“Since the onset of the pandemic, TKM has adopted a very proactive and multi-faceted approach to safeguard the physical as well as the mental well-being of all its stakeholders including customers, its employees, dealer and supplier partners,” the company said.

“The office staff at TKM’s corporate and regional offices, continue to work from home to help mitigate risks. In addition to the safety protocols that are being followed, TKM has provided safety kits containing essential items like sanitisers, 3 ply masks and handwashes to 5000 employees, their family members and their neighbourhoods.

“TKM understands the urgency of the situation. During these difficult times, TKM is taking obligatory actions to contain further spread and will continue to respond in accordance with guidance issued by the Government and its internal standards,” it added.

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
May 25,2020

Bengaluru, May 25: Karnataka Chief Minister B S Yediyurappa on Monday greeted the Muslim brethren on the occasion of Eid-ul-Fitr, which is being celebrated in a subdued manner due to coronavirus related restrictions.

"Warm greetings of Eid-ul-Fitr. May this festival of peace and harmony bring happiness in life," Yediyurappa said in his message.

He congratulated the Muslim fraternity for cooperating with the authorities by offering prayers at home during the holy month of Ramadan and supporting the government to contain COVID-19.

"I hope the same trend will continue during the festivities of Eid-ul-Fitr too. I thank you all for your support in the fight against COVID-19," he said.

The Eid festivities were a low-key affair as Muslim brethren celebrated the festival indoors in view of lockdown to contain coronavirus on Monday.

People offered the special prayers inside their houses instead of performing it in mosques and Eidgah, the open field to perform prayers, and refrained from going out to greet each other.

As the Karnataka government has ordered Sunday Curfew throughout the lockdown-4 till May 31, the otherwise bustling markets in the urban areas of Karnataka remained shut.

People could not venture out to make necessary purchases on Sunday.

The Jama Masjid of Bengaluru at the City Market had asked the Muslims to offer prayers inside their houses and not go to the burial grounds to express their sentiments for the departed souls.

"Mass prayers are not allowed anywhere in Karnataka. Just five important persons managing the mosques offered the prayers. Similarly, people go to the graveyard to pray for the dead ones but this time we asked people to express their sentiments from inside their homes instead of going to the burial grounds," Maulana Maqsood Imran, the Khateeb-O-Imam, Jama Masjid, Bengaluru, told news agency.

He said, "coronavirus is spreading very rapidly in our country. If we don't follow the guidelines, it will not only cause trouble to us but also to the doctors and the government. It will be the biggest celebration if we abide by the norms."

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.