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
Nothing to say ! Everything is in the name of Dargha fights route cause is Un-Islamic.
Wrong people of the RIGHT-RELIGION.
Desecrating grave and Ullal Kazi khoora Thangal and SSF electing a rowdy who spending night at bar as Darga president against majority wishes
these two example enough for how low people can go for Darga business
lock down darga to save people from hell fire
really inhuman incident. must be hanged whoever made this crime.
These people trying to take advantage of Minister's patience. May Almighty Allah rest in peace his parents. Aameen
either minister or common people , writings on graves , building permanent structures not allowed in islam, muslims should avoid it... people can not show their anger by destroying such things, or degrading graves... only fools and ignorant muslims only can do such things... those fighting for power, should understand that you are fighting for unlawful money , dargha itself is un islamic thing for muslims... Prophet Muhammed (pbuh) ordered to destroy such dargahs, muslims also follow that way only...
what UT Khader did now, this people fighting for dargah's president ship. and damaging ut khader's parents graves is different issue.
as Monu Borkala said,
the above incident clearly says Dargah business is very profitable and it does not have any islamic background, and i must say that for money this type of people will kill anybody and do above incident further,
inhuman can do this crime. totally i must say its wrong. for all of us parents means its like a god to us, for the memory we build their grave, it feels like they are with us, damaging grave is like playing with emotions.
Whoever did this job is highly condemnable at the same time being a well wisher of U.T.Khader we are expecting our Minister to act fairly in the trouble unfolding in Ullal dargah. He is taking wrong side by siding with SSF people against the wishes of people of Ullal. It was clear by recent election to Dargah Committee majority of 27 out of 49 members elected a president instead of supporting people verdict sending government official of waqf at mid night to lock the Dargah chamber is highly condemnable.
UT Khader's big Fan, this must be a work of SDPI, if dog bark on the street let them bark, we should not think about it.
khader sir we are with you, whatever damage they have done to you the same in other way they will go through it.
Dont worry khader bhai, not a big deal to build a newer one. let this dogs go to the hell.
sad news, whatever the issue is touching someone's grave is totally wrong. i can proudly shout \humanity lost\"."
the above incident clearly says Dargah business is very profitable and it does not have any islamic background
catch those mad dogs and grave them in road.
UT khader's father was a great man he sacrificed so much to the society. this is clearly a horrible violence.
this is totally wrong, the politician or common man. should not touch the grave of the parents, some mad dogs did this
Devotees? These are humans with the worst order. And they want to take iver management of a dargah... obviously for corrupt purpose. #Shame
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