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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coastaldigest.com web desk
May 2,2020

Newsroom, May 2: The Delhi Police’s move to book Delhi Minorities Commission chairman Zafarul Islam Khan under sedition charges over his social media statement condemning Hindutva bigots has raised many eyebrows. 

A pubic statement has been issued in solidarity with Zafarul Islam Khan by a group of NGOs and citizens which condemned the media trial targeting Khan.

The statement demanded legal action against those who are distorting Khan's Facebook post and spreading false propaganda against him.

Delhi Police Special Cell registered the FIR against Khan on the complaint of a Vasant Kunj resident. The complaint came to the Lodhi Colony office of the special cell, after the assistant commissioner of police (ACP) Safdarjung Enclave forwarded it.

The investigation has been handed over to special cell inspector Praveen Kumar.

According to the FIR, Khan has been booked under several sections of the Indian Penal Code -- 124 A (sedition) and 153 A (Promoting enmity between different groups on grounds of religion, race, place of birth, residence, language, etc,).

Khan on April 28 had posted controversial comments on his Facebook page. "Mind you, bigots, Indian Muslims have opted until now not to complain to the Arab and Muslim world about your hate campaigns and lynchings and riots. The day they are pushed to do that, bigots will face an avalanche," Khan had written on Facebook.

However, the Delhi Minorities Commission's chief on Friday had apologised for his controversial remark and had said that he never tried to tarnish the image of India. He also removed the controversial post from the social media and issued a prolonged clarification.

 

Comments

JMJ
 - 
Monday, 4 May 2020

Thank god... Our law and order works..... Unforturnately not all the time and most of the time work selectively

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News Network
July 13,2020

Bengaluru, Jul 13: The Bruhat Bengaluru Mahanagara Palike (BBMP) has initiated the process of recruiting 1,700 medical professionals, doctors, staff nurses and support staff to scale up its workforce to set up 30,000 COVID-19 care beds, an official said on Sunday.

According to the official, to establish and run 30,000 COVID care beds, 1,800 doctors and 3,600 nurses are required. A 10,100-bed facility was set up last week in the Bengaluru International Exhibition centre (BIEC) on Tumkur road.

The Health Department has calculated that one doctor per shift is needed for every 100 patients and one staff nurse for every 50 patients. Similarly, two supporting staff and three Group D employees are needed per shift for every 100 patients. Generally, a day is divided into three shifts of eight hours each.

According to the director of medical education, there are 25,000 nursing students who have completed GNM and BSc Nursing courses and are pursuing higher education.

Likewise, there are 3,231 medical, dental and Aayush interns, while MD and MS postgraduate students have been identified to be 1,613 in Bengaluru colleges.

"The department plans to actively utilise the services of interns and postgraduate students for the COVID Care Centre (CCC) operations," said the official.

Currently, there are 2,100 CCC beds operational under the civic body in Bengaluru with a pool of 503 doctors, 167 ayush doctors, 128 nursing and paramedical staff.

Earlier in May, the civic body also notified the recruitment of 380 microbiologists, technicians and data entry operators for six months. In June, the civic body again notified the recruitment of 637 doctors, nurses, technicians and group d employees to strengthen its fight against the pandemic.

Bengaluru has recently seen a spike in COVID-19 in Karnataka, accounting for 61% of all active cases in the state.

On Saturday, the city reported 1,533 new cases, taking its total tally to 16,862, of which 12,793 are active.

Karnataka recorded 2,798 more coronavirus cases and 70 more casualties on Saturday evening, raising the state's total cases to 36,216 and the death toll to 613.

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coastaldigest news network
March 25,2020

Mangaluru, Mar 25: In the wake of coronavirus outbreak, Nalin Kumar Kateel, Member of Parliament today declared that the coastal city of Mangaluru will remain completely shut tomorrow, (March 26) onwards.

"Today the people were given time to go out of their houses to buy essentials today. But from tomorrow, this will not be allowed," the MP said. 

"We are discussing with officials of all departments about ways to manage the situation. Essential things and facilities people need, will be delivered at their doorsteps. We are sorting out how to deliver the items on behalf of the government and mode of delivery of items to apartment complexes," he said.

He said that a large number of patients from Kasaragod had come into the city yesterday. Hence, the district administration has taken a decision, he said.

"Under the present circumstances, the hospitals in the city would not be sufficient for our purpose. So the administration will not allow any vehicles including ambulances into the city. All the ambulances would be blocked from entering Dakshina Kannada district at Talapady border and sent back," he said.

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