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
July 6,2020

Bengaluru, Jul 6: As COVID-19 cases continue to surge in Karnataka, more than 20 police stations were sealed in Bengaluru after many policemen tested positive for novel coronavirus.

"Since the last few weeks, the number of COVID-19 cases in the police department has increased as many of the policemen have tested positive, so that's the reason why the police have taken a decision to close police stations," Bengaluru Commissioner of police Bhaskar Rao said.

He added, "However, people can lodge their complaints and other issues can be solved in help desks launched outside premises of the police station. Most of the areas where positive cases found in the police station are been sealed down for the safety of the people and sanitised them."

However, some of the police stations would be functional from outside the premises.

Commercial Street, Cottonpete, Chickepete, KG Halli traffic police station are among the few stations closed due to scare of the coronavirus spread after some policemen tested positive in particular stations.

Rao further said that the traffic police, civil police along with home guards have been given safety gloves, face masks, and sanitizers along with face covers by the department of police.

According to the Union Health Ministry, 23,474 COVID-19 cases have been reported in the state, as of Monday.

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News Network
April 10,2020

The Indian government has advised expats in the UAE and the Gulf against travel till flight curbs to their home country are lifted. This follows the clamour from some quarters for special repatriation flights to India.

A senior Indian External Affairs Ministry (foreign ministry) official said Indian citizens are safe in the countries they reside in. Prime Minister Narendra Modi had spoken to leaders of Gulf countries who assured him of their welfare, the Indian foreign ministry said. Meanwhile, the Minister of State for External Affairs, V Muraleedharan,, according to a Malayalam news report, also ruled out special flights.

Responding to a question from Khaleej Times on blue-collar workers' angst following job losses, Vikas Swarup, Secretary West in the foreign ministry said, "Insofar as repatriation is concerned, as you are aware, government has advised against all travel, and Indians have been told to stay where they are, As and when the (21-day) lockdown is lifted, and normal civil aviation resumes, Indians wishing to come back will be able to do so."

According to the latest data from the Indian foreign affairs ministry, there are 1,400 cases of Covid-19 infections among Indian expats in the Gulf region.

Swarup said infected Indians are being treated and kept in isolation in the UAE and Gulf. "Our missions have established contact with all the community leaders and the situation is under control," he said.

Cargo flights operating as usual  

Cargo flights carrying fruits and vegetables from India to the Gulf have not been disrupted and would continue as usual, the diplomat said. "We are also helping with medicines based on the requests of Gulf countries," he said.

Eight million India expats live in the Gulf, including close to three million in the UAE. They account for more than 60 per cent of remittances to their home country.

India's long lockdown of 21 says ends next Tuesday. Indications are that it could be extended. Some states like Orissa have already stretched it till the end of the month and others are expected to follow suit.

The government believes that the disease is now concentrated in 75 districts, and the focus should be on these areas to manage and contain the virus.

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News Network
April 7,2020

Bengaluru, April 7: Karnataka government on Monday allowed bakeries and related product food units in the state to open and function with minimum staff amid a coronavirus nation-wide lockdown.

A circular issued by Rajendar Kumar Kataria, Secretary to the government said, "The Central government has permitted the functioning of food units engaged in bakery and biscuit, condiments, confectionery and sweet for manufacturing, supply and operating retail outlets with minimum staff/labour."

The circular said these units shall strictly follow the guidelines issued by the Ministry of Health and Family Welfare and Department of Health and Family Welfare, Karnataka government with regard to the preventive measures to be ensured for combating COVID-19.

"It is stated that all employers shall ensure that these units maintain high standard of health, hygiene, sanitation and social distancing. The units shall not permit serving/dining in the premises and only parcel/takeaways are permitted," the circular added.

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