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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July 2,2020

Yadgir, July 2: A fresh video of the health staff dragging the body of a Covid-19 victim and dumping it into a pit disgracefully has gone viral on social media.

The incident occurred in Yadgir district of Karnataka on Tuesday, just days after shocking visuals of bodies of Covid-19 victims being handled disrespectfully in Ballari district went viral.

In the fresh video, two persons with PPE suits can be seen dragging, hurling and dumping the dead body of a senior citizen who died of covid-19. The duo dragged the body using a wooden log inserted to both hands of a plastic body bag for nearly 300 meters.

After pulling till the pit, the body was heartlessly dumped including a wooden log. Several villagers were also seen in the video.

The victim was settled in Siravara in Raichur district, although he originally hailed from Yadgir. On Sunday he was busy overseeing his daughter' wedding that was first postponed due to lockdown.

According to a relative of the deceased, on Monday he complained of breathing problems following which an ambulance was called to carry him to Raichur Institute of Medical Sciences (RIMS).

Raichur Deputy Commissioner (DC), R Venkatesh said he was brought dead to the hospital as he succumbed en-route. The family members were quarantined and the body was packed as per the protocols and sent to Yadgir as his family members informed that the victim is from the neighbouring district. "In Yadgir district he was swabbed and his test results came positive," DC informed.

As soon as residents of Honagera village learned about the arrival of the body, the family members were harassed asking them to not to bury the body in any of the fields in the village.

Sridevi, a relative of the deceased said "the locals assembled near our house and threatened consequences if the body was brought here. Fearing backlash, we asked the district authorities to perform the last rites in the farmland owned by the victim. But it is now saddening to see the video where the body was inhumanely dragged and dumped."

Meanwhile Karnataka Chief Minister BS Yeddyurappa on Wednesday (July 1, 2020) said that six staff members have been suspended in connection with the inhumane funeral of a man who died of COVID-19 in Balari district.

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News Network
March 4,2020

Bengaluru, Mar 4: Seeking to allay fear among the citizens in the wake of Coronavirus scare, Karnataka Health Minister B Sriramulu on Wednesday made an appeal to the people not to pay heed to rumours spreading on social media.

In a series of tweets, Mr Sriramulu assured people that the government has taken adequate measures to ensure that the disease does not spread further. "Don't lend your ears to rumours about the Coronavirus in the social media. Rely only on the authentic information," he tweeted.

The minister's tweet came as Bengaluru reported the first case, after a techie from the city with a travel history to Dubai and interaction with Hong Kong-based people there, was admitted to a hospital in Hyderabad.

As panic gripped the city, Mr Sriramulu said the apartment where the software engineer was staying has been sanitised. Besides, his 25 colleagues have been identified. One of them has been admitted to the hospital as a precautionary measure and his blood sample has been sent for lab test.

"So far 40,207 people have been screened at the International airport. 251 blood tests have been done, of which 238 were found negative, while the rest of the reports are yet to come," Mr Sriramulu tweeted.

The health department said three people have been admitted to the isolation ward at the Rajiv Gandhi Institute of Chest Diseases (RGICD).

Meanwhile, a parent appealed to people not to panic about the Coronavirus in the techie's apartment, where his son too resides. "My son is from the same apartment. To update everyone, there is absolutely nothing wrong here. It was more of panic on social media that created this," he said in a message.

He said that the man who is in Telengana and testedpositive stayed in this building on February 21. "His roommate was taken to hospital and has tested negative," he said. It is been two weeks since the incident. The virus cansurvive only for 48 hours under optimal conditions, he noted. "Everyone in this building is safe. Please educate yourself. Refrain from spreading panic and misinformation." he added.

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News Network
April 2,2020

Bengaluru, Apr 2: In a bid to discourage people from coming out on roads during the lockdown, Bengaluru Traffic Police have inscribed a message that reads, "If you come to road, I'll come to your home."

It was written on the road at Nagenahalli check-post. The message was written by the cops in the regional language.

Meanwhile, nine fresh cases were reported in Karnataka with the count rising to 110 in the state on Wednesday.

Out of the total cases, three persons died due to the virus while nine others have been discharged after recovery.

"COVID-19 cases climb to 110 in Karnataka, with nine fresh cases being reported between 5 pm yesterday and 2 pm today. Out of the total cases, three have died while nine others have been discharged," a bulletin issued by the state health department said.

"Out of 110 cases detected and confirmed in Karnataka so far, seven cases are transit
passengers of Kerala who have landed in our airports and being treated in
Karnataka," it added.

The Union Ministry of Health and Family Welfare on Wednesday said that there are 1,834 coronavirus positive cases in India, including 1,649 active cases, 144 cured/discharged/migrated people and 41 deaths.

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