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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Agencies
July 5,2020

Dubai, Jul 5: Three Indians, who were repatriated on a chartered flight from the UAE on Friday, have been held in the state of Rajasthan after officials seized gold worth Dh2.2million from them, the government announced on Saturday.

They are likely to be placed under arrest along with 11 others, who were repatriated from Saudi Arabia, from whom gold worth Dh5.5million was seized, a statement from the government tweeted by Press Information Bureau in Rajasthan said.

The gold bars were hidden in emergency lamps, photos attached to the tweets showed.

The 14 passengers had arrived at the Jaipur International Airport by two chartered flights.

They were intercepted by the Customs team at the airport and 31.9kg of gold valued at Rs156,759,820 (Dh7.7million) concealed in the baggage was recovered from these passengers.

Three passengers arrived from Ras Al Khaimah by Spice Jet Flight SG9055 and 12 gold bars/bricks weighing 9.3kg valued at Rs.45,761,100 (Dh2.2million) were recovered from them, the statement said.

The Indian Consulate in Dubai confirmed to Gulf News that the flight was chartered by a private company for repatriating its employees.

It is suspected that the passengers were used as carriers to smuggle gold.

The other 11 accused had arrived from Riyadh and 22.65kg of gold bars, predominantly with Suisse markings, valued at Rs110,998,720 (Dh5.5million) were recovered from them.

“The said recovered gold bars have been seized under Section 110 of the Customs Act, 1962. The said passengers are being interrogated and are likely to be placed under arrest in terms of section 104 of the Customs Act, 1962,” the statement added.

Indian media had earlier reported similar cases in which stranded Indians were apparently lured to be carriers for smuggling gold on repatriation flights from various countries.

A spike in gold smuggling attempts using Indians getting repatriated after losing jobs was also reported from the Indian state of Kerala.

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News Network
March 9,2020

Hubli, Mar 9: A Hubli court on Monday rejected the bail application of three Kashmiri students, who were booked for sedition, after their video allegedly raising pro-Pakistan slogans went viral.

The plea was filed under Section 439 of CrPC.

This comes after the Hubli Bar Association earlier withdrew its resolution against representing the three Kashmiri students and said that advocates who wish to appear for them can approach Dharwad Principal District Court to file bail plea.

The three students are Basit Ashik Sophi (19), Talib Majid (19) and Amir Mohiuddin (23). They were booked under sedition charges for raising pro-Pakistan slogan in a video shared on social media.

They were earlier transferred to Belgaum Hindalga jail from Hubli sub-jail and the case, registered in Gokul Road police station, was also transferred to the rural police station because the video was recorded in the college hostel room, which is in its jurisdiction.

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coastaldigest.com news network
May 20,2020

Mangaluru, May 20: The local unit of Bharatiya Janata Party has defended the delay in repatriation of coastal Kannadigas from Middle Eastern countries saying that it is impossible to bring all expatriate together at a time when covid-19 cases are continuing to spike in the region. 

Addressing a press conference, Sudarshan M, president of Dakshina Kannada unit of BJP said that the entire district administration was working as a team under the leadership local MP Nalin Kumar Kateel and district minister Kota Shrinivas Poojary and seven BJP MLAs in this critical juncture.

“Without any bias, we also have reached out to the needs of people of Mangaluru assembly constituency represented by former minister and Congress MLA U T Khader,” he said, adding that his party will not forget Indian expatriates in the Gulf too. 

Replying to the charge of not catering to the interests of Kannadigas stranded in the Middle East by way of arranging special flights, Sudarshan said this is part of a well-thought-out move to bring them in batches.

“It is impossible to bring back all Kannadigas stranded in Middle East all of a sudden. Their repatriation will be in phased manner based on facilities available in the district,” he said.

“The district authorities have created healthcare and quarantine facilities for a limited number, be it at Covid-19 hospital or institutional quarantine, and bringing them together will create logistical problems,” he said.

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