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.
Mahesh S Patil, the judge of second additional civil court and JMFC, Managluru, ruled that Mr Uchil should be given a compensation of Rs 50,000 along with interest at the rate of 9% per annum from the date of suit till the actual payment towards damages.
Comments
Dear Abdulraheem Uchil,
Hope these messages, will contribute you a major change in your life as a TRUE MUSLIM.
At least now you have to change yourself for sake of your own.
All community people will love you, if you truly learn and change.
Allau is Gafoor Al Raheem. He accepts sincere apologies and Tauba
I really respect for the word what he said is
About the interest being Muslim !!!
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear Mr Rahim,
Congrats on winning the law suit.
In my opinion, you dont have to listen to the negative comments, especially to that of you receive from bearies. It doesn't matter which political party you belong to, as long as you do good service to the society.
They advise you on how to be 'true muslim'. 'True muslim' tag is not 'universal'. Till today nobody can unambiguously/univocally/indisputably define 'true muslim/islam'. We have 100s of parties in Islam. Each party considers themselves as 'true muslims'. This confusion will never ever be cleared until end of this world. Even terrorist claim they are 'true muslims'.
So, please continue your good works sir. By good works I mean moral/ethical and socially beneficial works, which are independent of any religion. Good is good. Bad is bad. No need any religious tags/support for it.
Thanks for valuable suggestions,(positive and negative comments )
What a joke Rahim!!! From which jungle these so called politician are coming from... Redicolous
Only in front of Media he is telling that he is not accepting interest. The real matter is entirely different. If he is a true Muslim he never join facist party like BJP. If he take interest or leave interest what is the difference....??? for him.
Dear Raheem Bhai,
If you are a true muslim then you should not accept even 50,000/ rupees . Because it is not that your hard earned money. Being a true muslim atleast you should donate this money to some charitable organization such as Old home , disabled children center or orphanage , then only you can say you are a true muslim.
Ra(hi)m Uchila, you cannot be a true muslim by not accepting interest, you have to learn and practice Islam to be come Muslim.
example for the man kind, best of rahim uchila \Being a ‘true Muslim’ I cannot accept interest,” he said."
By the way, what was the actual allegation? Can you please publish that defamatory article here ? :p
Rahim uchil shirt color and pose super
Just avoiding interest will not make a person true Muslim. A Muslim has to set example by practicing all teachings of Islam in life, so that even Non-Muslim be attracted.
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