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
April 20,2020

Bengaluru, Apr 20: Karnataka Chief Minister BS Yediyurappa on Monday came down heavily on Congress legislator BZ Zameer Ahmed Khan over the Padarayanapura vandalism that saw a mob run amok against efforts to quarantine suspected COVID-19 persons late on Sunday evening. 

Khan, who represents the Chamarajpet constituency where Padarayanapura is located, said that authorities should have gone to the area during day time.

“Who is he to say that? What does he have to do with this? Why should we ask him? Should we get his permission to carry out government work? Instead of saying that action should be taken, he is speaking like this. Should we then think that he incited the mob? This is the height of being irresponsible,” Yediyurappa said. 

Following the violence, the police have arrested 54 persons and “five more will be arrested,” Yediyurappa said.

Khan clarified that he did not defend those who indulged in vandalism. “I condemn the incident and action should be taken. I’m not saying officials shouldn’t have gone. My point is that they should’ve gone during the day and by creating awareness beforehand that people need to be quarantined,” he said, adding that the BBMP had identified 57 people to be quarantined in Padarayanapura. 

“People in this area are poor, uneducated and are mostly coolie workers and daily wagers. But whatever happened was wrong,” Khan said. He also pointed out that he was the one who arranged for 80 people to be quarantined in Tipu Nagar. 

Yediyurappa said the Padarayanapura incident was unprecedented. “In the entire state, never had such incidents taken place. Everybody agrees this is unacceptable,” the CM said. “Whoever breaks the law - Hindu, Muslim, Christian or anyone - should face action,” he said.

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News Network
May 3,2020

Bengaluru, May 3: Karnataka Government has allowed the movement of migrant workers, pilgrims, tourists, students and other persons who are stranded and also those who want to go to their residence as a "one-time measure" from district to district, after obtaining "one-day, one way" passes issued by concerned authorities.

Consequent to the Ministry of Home Affairs (MHA) new guidelines on lockdown measures, the government of Karnataka issued new guidelines on lockdown measures which will come into effect from May 4 for the period of two weeks.

In an order issued on Saturday, Chief Secretary and Chairman, State Executive Committee, Karnataka State Disaster Management Authority stated, "In the exercise of the powers, conferred under the Disaster Management Act, 2005, the undersigned, in his capacity of Chairman, State Executive Committee, hereby order to permit movement migrant workers, pilgrims, tourists, students and other persons who are stranded and also those people who want to go to their residence as a one-time measure from district to district with one-time one-day one-way passes issued by concerned Deputy Commissioners of the districts/Deputy Commissioner of Police in Commissionerates for strict implementation."

The details of the passes issued shall be shared by the issuing Deputy Commissioners of the districts/ Deputy Commissioner of Police with the receiving Deputy Commissioners of the districts/Deputy Commissioners of Police shall follow the SOPs prescribed by the Ministry of Health and Family Welfare for the movement of such persons, the order read.

It is reiterated that this would be a one-time one-day one-way pass for the individuals to reach their final destination.

Meanwhile, three deaths and 12 new COVID-19 cases were reported in the 24 hours in Karnataka, said the state Health Department on Saturday.

According to the Health Department, the total number of coronavirus positive cases in the State is now 601. 271 patients have either been cured or discharged. The virus has killed 25 people so far in the State.

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News Network
May 4,2020

Mangaluru, May 4: In line with the directive of the Deputy Commissioner against opening textile shops even after the relaxation of lockdown, it has been decided to continue the closure of all textile shops in Hampankatta area of Mangaluru until the end of the blessed Ramadan, President of KTA Youth Forum said on Monday.

Pointing out that several rumours were doing the rounds in social media on the opening of textile shops in the wake of Eid, the owners of textile shops met on Monday morning and unanimously decided against opening the shops. The association said the local MLA has also been consulted on the issue.

KTA Youth Forum is an organisation of owners of shops at Kunil Centre in Tokyo Market and Akbar Complex here, mostly comprising of Muslims.

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