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
Whatever you do, shout, cry, Islam is the fastest growing religion not only in India, also in the whole world.
Only learned and educated people know about Islam.
corrupt brains talk like this so called sadhvi.
Even a 5 year old boys and girls can understand that there is no Beja (intellect) in them... How come the adult elect such kind of Leaders who bring their intellect to compare with the Monkey... Sometimes monkey show how intelligent they are...
She looks like came from BUDWARPET of Pune....anyway she use to give controversial statements for publicity stunt but she can be well known as an prostitute for adithyanath & others but not anything else....
Bondu ijjandina marl ponjo..... now i laugh to this type of idiotic statements this people dont know that islam will be alive till this earth exists........pity on u uncultured people
We need people like (Trump,Sadvi,Thogadia,Batta,) etc...who really advertise ISLAM.
Their Anger,Aggressiveness,Fear about Islam is clearly shown to the World.
After all what can a Creation do in front of their Creator (Almighty Allah)
We can just help you by Praying to Almighty Allah may to shower his blessings on you people .Ameen.
Its difficult because many non-muslims born to muslim fathers. Only their mother can tell their real fathers.
RSS should conduct DNA test, i hope they will find 99% DNA belongs to MUSLIM LEADERS.
1000 SAAL HAIYAASHI KA NATHIJA HAIN
She looks like road side beggar begging for food...who is she?? look at her.. yuck!!
Dear Prachiji,
good idea. 1.But first of stop buying gas, petrol, diesel from these countries. For that you need to research on cow urine to use as alternative or need to start pushpak viman,as always our PM says, Planes are the ideas from Puransas. 2.Stop exporting to these countries. 3. Bring back all the Indians working in these countries. Let us see how it will work. Do you have the plan to do this? 4. call back External PM or boycott him for visiting muslim countries begging for investment.Simply giving the communal statement and enjoying with the wealth of these people is not good for your health. people are realizing their mistake by voting your party.
India should be free from Sadhus and Sadhvis and should be sent to Singapore to share / taste snake and beef dishes with Naren
This is what BJPians foul mouth has to utter when PM is roaming around the word visiting Muslims countries and Christian countries begging them to invest in India. Poor people does not have any Hindu country to visit other than Nepal. They want Petrol from Muslim countries, they want investments from Muslim countries, they want Beef order from Muslim countries. But, they don't want Indians to live in India.
BJP is a party of such radical communals. They are not even aware that if they harm 1, 10 will be harmed by Creator, harm 2000 then 20000 will be harmed by Creator. Creator is the best planner. Do not forget natural disasters where 1000s perished.
Bap ray Bap wa Wa Parchi Deddi you better Tie with Our Gangasara \Narain\"he intends same stupid thinking, mainly you Saffron Criminal goonda Looter leader your mind is very short, Your Dream is very high but If you want leave in this Country your thinking stupidity's you Deedi never and ever get peace always in Hell of life, you Understand First, Vanishing others you might Vanish First remember this world is far away from your thinking, you thought your Cheela go America kneel down to US President, you can dream anything for long/ way distance but do not happy days, You Buffoon's definitely get your own day one or other day Parchi."
This only dream......in future it will be vice versa
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