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
Dears even if prophet (pbuh) did not ate beef ,never deneyed it to his rollovers ,what is halal and what is haram is clearly mentioned in Quran, but for a beliver its not compelsory to eat beef to prove his belief it permisable one like mutton and chicken or veg it depends upon the place, whether, biographical condition ,ect, here not only Muslims meeting beef people of,so many other religion also eating but only Hindus worshiping it this is fact ,,one more thing people of different parts of the world eetind beef since human eyes but problem begins only it created a vote bank ,,now real Hindus should prove what is real hinduism which permits to kill human for the name of cow? Still cow know nothing!!
CRAZY man half knowledge , makes him crazy to express wrong words
Dear CD
Don't support by publishing un islamic topic from so called Muslim (Nawzbillah)
Beware of such people,
Our bellowed prophet peace be upon him, said anybody who lies as misquoting against him, shall reserve their place in hell.
We should ask him for authenticated proof, sure he will fail to do so, then people have to decide his fate on the grounds of sharia law.
Better change your name to Tarak Mehta :-)
Hello, who is this Tarek Fatah, Agent of RSS, what he know about Prophet Swallahu Alaihi wa sallim. Where is quoted beef is Haram in Qur'an or Hadith.
What he is talking even not veda, purana, ramayana or in Mahabharatha there is no single word against slaughtering cow. 10000 of cows and other animal slaughter in yaaga, yajna.
Prophet Muhammed peace be upon him Told be aware of MUNAFIQs like you . and also mentioned that the day will come when Ignorant will become leaders ......so you try to become......you are going against ISLAM by claiming something Haram when its allowed in ISLAM
May be one day you will say PIG also allowed....!!!
Add new comment