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.
"We Hindus offer Lord Krishna's package to Muslims--give us 3 temples and keep 39,997 masjids. I hope Muslim leaders don't become Duryodhans," Swamy tweeted.
Comments
Temple are filled with IDOLs, All idols doesnt speak, it cannot help itself, it cannot move,,,, & ALLAH say human are intelligent when they THINK. I wonder Y intelligent beings are not thinking ???????
VEDAS says NA Tasya Pratima Asti... There is no image, statues and pictures of God.. Why are u worshiping such thing which is life less.
WORSHIP THE CREATOR NOT HIS CREATION... (Quran speaks lot about our LIFE and the creation of all that exists..) If the creator says Mankind is intelligent .. Then FIND out Who is worthy of Worship rather than blindly following and worshiping the LIFELESS objects..
SEEK guidance from the one who gave us soul, Just say OH God, the one who gave me soul - GUIDE me to the TRUTH..
U will be on the path of those who are successful... GOOD LUCK May ALLAH guide those who look for HIM.
I say you give all your other temples to Muslims and keep that 3 temple.
BJP always keeps this Rama mandir issue open to contest in election, if they build Rama mandir issue is closed, then there will not be a big issue to contest in election. One thing is clear BJP wont build Rama mandir. They are following divide & rule.
BJP is counting downfall because of such morons in their party
And about this giving and keeping business....does he thinks that it's as easy as giving his daughter to a Muslim boy
Guys,
Why Swami is handling the Muslim community because his only one daughter ran away with Muslim guy that is why he is in pain so everywhere he is carrying that pain that he was not able to control his daughter. we should understand his pain. just ignore him.
Subramanya swine has nothing to do as his name is fading away from active politics, this is just a publicity gimmick.
He went on top list of jokers in BJP for this joke...see the pic, he himself is not controlling on his own joke..
He is a big joker, see how he is laughing on his own joke...
Swami dreaming in day time, Contraction of temple I am sure not in your this life. you should take a rebirth again.
To dear Fair Hindu Brothers,
Please have control on his tongue. Truly, he does not represent Hindu Community.
As in every community, there are black sheep. He could be one of them,
However once again, his comments has no bearing with Fair Hindus. The strange, why BJP does not want to stop such crazy leaders to be in their core committee.
Therefore even BJP is also not yet all representing real HIndus.
Now in India, we need a very strong party in the national level., like AAP in Delhi., consisting of like minded fair and open people. Let us encourage AAP in the next election.
In Delhi, they are success, God willing they can be successful in Centre.
A New deception to FOOL people & Unthinking saffron plan to loot. More deception will come when Elections are nearer & nearer...
Looting the country & destroying the peaceful society is the only agenda of Such LOOTERS...
Forget about 3 mosques, we will not give you a dust from them...
one of sardar's of stupid .... joker swamy :p
Susu Swami network begins for the year 2016..
Ye tho pagal swami hai. !
Why only such jokers are leaders in BJP.
BJP Credibility and fate of commons : Yatha raja - Ta tha praja.
It is better if this stupid concentrates himself on fixing unemployment problems around...temple construction is not an issue for people...
forget about 3 temples............even you can not get 3 hairs instead.............. if the Ram janmabhoomi issue is resolved , then saffronists have no issue to revolt innocents against Us
Swami very understanding Gentleman as well he assume Millions of Millions Hindustani's are big buffoons what he thinks so, probably he do not understand why Temples, Mosques, Churches or any other spiritual places, swami for you better stay in spiritual place as a puja that is best job for you or better to go Tamilnadu and join Cheala work very good or we have to have some different options to you Gentle man.
Jai Hindustan
election joke
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