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
February 27,2020

Bengaluru, Feb 27: Karnataka Chief Minister and veteran BJP leader B S Yediyurappa turned 78 on Thursday with Prime Minister Narendra Modi and a host of leaders greeting him.

Modi hailed Yediyurappa as a "hardworking" chief minister and wished him long life and good health, while several state leaders flocked to his residence and greeted the Lingayat strongman.

"Birthday greetings to Karnataka's hardworking CM @BSYBJP Ji. He is passionately working for the state's progress, especially on farmer welfare and rural development. I pray for his long life and good health," the Prime Minister tweeted.

A large-scale "non-partisan" birthday bash will be held here later in the evening.

The felicitation function will see Defence Minister Rajnath Singh and former chief minister S M Krishna besides Siddaramaiah of Congress and H D Kumaraswamy of JD(S) sharing the stage.

Union Ministers D V Sadananda Gowda, also a former chief minister, Pralhad Joshi and Suresh Angadi will be in attendance.

BJP National General Secretary (Organisation) B L Santosh and state party chief Nalin Kumar Kateel are among those who will be gracing the event.

While Santosh will release a felicitation volume in Kannada with 78 articles from a cross-section of people, including politicians, writers, bureaucrats, and spiritual leaders; Siddaramaiah and Kumaraswamy will unveil a coffee table book and documentary respectively.

Yediyurappa, on the eve of his birthday on Wednesday, had said whatever he has achieved is a result of the people's "blessings and faith" and requested well-wishers not to bring bouquets, flowers, shawls, sweets, turbans or any souvenirs to greet him.

The birthday function organised by "Yediyurappa Abhinandana Samiti" (Yediyurappa Felicitation Committee) is being seen in some quarters as an attempt by Yediyurappa and his loyalists to send a message to the party leadership that he was still "strong".

The BJP's current dispensation under Narendra Modi and Amit Shah has retired several senior party leaders who crossed the age of 75.

However, an exception was said to have been made in Yediyurappa's case after the BJP won 25 of 28 seats in the Lok Sabha election under his leadership.

In the 2018 elections, he spearheaded the campaign of the BJP which emerged as the single largest party but fell short of the majority mark following which Congress and JD(S) came to power stitching a post-poll pact.

However, the coalition collapsed in July last year, paving the way for return of Yediyurappa as Chief Minister for the fourth time.

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News Network
April 22,2020

Bengaluru, Apr 22:  Karnataka Women and Child Welfare Department has warned of action against those raising funds for Covid relief works, by using photos of children.

In a release here on Wednesday, the department said that several non-governmental organisations and voluntary groups were using the photographs of children to collect donations.

It has come to notice that several NGOs are using photos of children to raise donations to meet their food, health and other expenditure during the lockdown. However, this is against the Juvenile Justice (Care and Protection of Children) Act," the Director of the ICDS scheme stated in a release.

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News Network
January 22,2020

Bengaluru, Jan 22: Three alleged Bangladeshi nationals living illegally in India were apprehended in Karnataka's Bengaluru district, police said on Wednesday.

The arrested are identified as Mohammed Lokman (55), his wife Jasmin Begun (35) and son Raasel (22) are natives of Boresel village in Pirojpur district in Bangladesh.

According to police, they were staying at a camp at Munnekolala village.

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