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. 

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News Network
May 30,2020

Dubai, May 30: Taking advantage of Vande Bharat Mission, a notorious NRI conman has fled to India through a repatriation flight after duping several businessmen in United Arab Emirates and stealing goods worth nearly six million dirhams.

Yogesh Ashok Yariava, 36, owner of the fraudulent Royal Luck Foodstuff Trading and prime suspect in the audacious scam took a flight to Hyderabad from Abu Dhabi on May 11 with around 170 repatriates.

His mandatory two-week quarantine period would have ended on May 25, but for his 40 odd victims a protracted battle for justice has just begun.

Last Wednesday many of them trooped down to the Indian Consulate office in Dubai in the hope of getting an audience with Consul General Vipul. The following day they went to Bur Dubai police station clutching dud bank cheques.

In a replay of the familiar trading scam, conmen representing Royal Luck Foodstuff approached unsuspecting traders and made bulk purchases against post-dated cheques.

They bought anything they could get their hands on: Facemasks, hand sanisters and medical gloves worth nearly half a million dirhams from Skydent Medical Equipment, Raheeq Laboratories and GSA Star; rice and nuts (Dh393,000) from Al Baraka Foods; tuna, pistachios and saffron (Dh300,725) from Yes Buy General Trading; French fries and mozzarella cheese (Dh229,000) from Mehdu General Trading; frozen Indian beef (Dh207,000) from Al Ahbab General Trading and halwa and tahina (Dh52812) from Emirates Sesame Factory. It’s a long list and it keeps getting longer as more victims come forward.

When their post-dated cheques started bouncing, the traders rushed to Royal Luck’s Opal Tower office in Business Bay. But it was too late. They had shut down and all their 18 staffers had disappeared. Visits to their warehouses also drew a blank.

“Calls made to the company’s sweet-talking purchase managers who visited us days earlier carrying fancy business cards remained unanswered,” said Chandrasekaran Ganesan of Ajman-based Skydent Medical Equipment which supplied protective face masks worth Dh175,875.

Another business owner, Anand Asar said he visited Royal Luck’s office after his cheque of Dh79,552 returned marked insufficient funds. “The security guard at the building told us their staff was last seen on May 17,” said Asar who has since lodged a police complaint.

“I am devastated. I don’t know how I will recover my losses,” said another trader.

Victims reckon the ill-gotten goods have been sold to third parties at dirt cheap prices.

“They have got millions of dirhams worth of goods against worthless pieces of paper. The scammers would rack up huge profits even if they sell our stuff for one tenth their price,” said another trader who pegged his losses at Dh200,000.

The scam comes close on the heels a Dh4 million fruit loot in which 810 tonnes of fruits shipped by Indian exporters to OPC Foodstuff Trading in Deira, Dubai were similarly stolen last month.

Legal adviser Salam Pappinisseri from Sharjah based United Advocates that represents five firms which have collectively lost over Dh550,000 said they are weighing legal action against the prime suspect Yogesh Ashok Variava in both India and the UAE.

“Yogesh, originally from Mumbai, absconded from the UAE with large amounts of money on an emergency evacuation flight. It’s strange that the fraudster got a seat in the flight which was meant to bring stranded Indian citizens who had registered with the Indian embassy and consulate requesting repatriation on urgent grounds,” said Pappinisseri.

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News Network
February 14,2020

Bengaluru, Feb 14: After the swearing-in of ten former JDS and Congress MLAs, political boundaries seem to have become more fluid, with little clarity on who is on whose side. When Honnali BJP MLA Renukacharya visited senior Congressman DK Shivakumar at the latter’s residence, many eyebrows were raised over the reason behind the meeting. There was speculation over why Renukacharya would be meeting a man who is, in all likelihood, slated to be the next KPCC president.

Renukacharya reacted to the rumours by making the meet sound purely professional. He said, “We have a three-day Krushi Sammlan in Honnali, and I went to invite him (DKS) for it.’’   Shivakumar also remained tight-lipped over the real reason behind the meeting, and corroborated Renukacharya’s story. However, insiders claim that the two discussed other issues too. It may be recalled that Renukacharya had openly rebelled against Yediyurappa in 2009.

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News Network
July 3,2020

Bengaluru, Jul 3: Karnataka on Friday reported its biggest single day spike of 1,694 new COVID-19 cases, taking the taking the total number of infections in the state to 19,710, the Health department said.
The state also recorded 21 fatalities pushing the number of deaths to 293.

The day also saw 471 patients getting discharged after recovery; even as 201 patients in the state were undergoing treatment in ICU. Of the 1,694 fresh cases reported on Friday, a whopping 994 cases were from Bengaluru Urban alone.

As of July 3 evening, cumulatively 1,9710 COVID-19 positive cases have been confirmed in the state, which includes 293 deaths and 8,805 discharges, the Health department said in its bulletin.

It said, out of 10,608 active cases, 10,407 patients are in isolation at designated hospitals and are stable, while 201 are in ICU.

The 21 dead include five from Bengaluru Urban, three each from Chikkaballapura and Kalaburagi, two each from Vijayapura and Shivamogga and one each from Ballari, Hassan, Davangere, Bidar, Raichur and Bengaluru Rural.

Out of 21, fourteen are men between the age 48-87 years, and seven women between 25-75 years.

Those dead include those with the history of Severe Acute Respiratory Infection (SARI), Influenza-like illness (ILI), inter-state and inter-district travel and cardiac patients.

The contact history of at least four dead people is under tracing.

Out of 1,694 positive cases on Friday, contacts of the majority of the cases are still under tracing.

Among the districts where the new cases were reported, Bengaluru Urban accounted for 994, followed by 97 from Ballari

and Dakshina Kannada, Kalaburagi 72, Tumakuru 57, Bengaluru Rural 44, Dharwad 38, Mysuru 35, Mandya 33, Bidar 28, Chamarajanagara 24, Shivamogga 23, Gadag 19, sixteen each from Udupi and Kodagu, Yadgir 14, thirteen each from Hassan and Belagavi, Kolar 11.

Bengaluru Urban district tops the list of positive cases, with a total of 7,173 infections, followed by Kalaburagi (1,560) and Udupi (1,258). Among discharges, Kalaburagi tops the list with 1,143 followed by Udupi (1,093) and Yadgir (855).

A total of 6,71,934 samples have been tested so far, out of which 18,307 were tested on Friday alone.

So far 6,35,582 samples have been reported as negative, and out of them 16,290 were reported negative on Friday.

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