Embarrassed B R Shetty helplessly resigns from Abu Dhabi’s ailing NMC Health

News Network
February 17, 2020

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

sunita kejriwal
 - 
Monday, 17 Feb 2020

BRS could not fool all the people all the time!

 

Bhakth
 - 
Monday, 17 Feb 2020

Illegal way of earning will not last for long. 

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News Network
February 9,2020

Bengaluru, Feb 9: Senior JD(S) leader and former prime minister H D Deve Gowda has called upon all the regional parties and secular parties to join hands with the Congress and work in tandem to take on the BJP.

Noting that mere speeches would not help, he said the regional and secular parties should enhance their strength politically in the country.

"We all need to join together with Congress and work in tandem with the available strength only then will we be able to stop them (the BJP)," the JD(S) supremo said at a public meeting organised by the party in Hassan district on Saturday.

Gowda cautioned the regional and secular parties against sitting idle watching the developments in the country.

"If the small and regional parties do not exercise the powers given by Dr B R Ambedkar to the country, they (BJP) are going to the extent of finishing them up," he said. Interestingly, the JD(S) patriarch, had in the run-up to the December bypolls to Karnataka assembly said he would not align with the Congress and dubbed it as "not trustworthy."

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News Network
February 19,2020

Malappuram (Kerala), Feb 19:  children of a couple in a span of nine years has raised suspicion among police personnel here who have registered a case following a complaint after a three-month-old child of the family died on Tuesday and was buried.

Police exhumed the body, which was buried in the morning, and took it to the district hospital at Tirur for post-mortem.

The infant was the sixth child of the couple, police said.

"A case has been registered (for unnatural death) in the matter to verify the death beyond any suspicion raised by locals since five other children of the couple had died in the past nine years," a senior police official said.

The couple had three boys and three girls of which the third girl child lived till the age of four and the rest died before turning one.

"The post-mortem will take place today itself.We are collecting the medical records of the children who had passed away earlier.

We will identify the cause of death after analysing the records and discuss the matter with forensic doctors," Tirur Deputy Superintendent of Police (DySP) said.

However, relatives claimed that there was nothing suspicious in the death of the children and that doctors have said it was due to some genetic disease.

"The post-mortem of the third child was conducted and the doctors said the death was due to some genetic problems. They said they were helpless," a relative said, adding that the family was ready to face any probe.

According to the locals, the couple had claimed that the children have died due to epilepsy.

Sources said the baby was taken to a hospital but was dead prior to reaching the hospital early this morning.

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News Network
January 23,2020

Bengaluru, Jan 23: Karnataka government on Thursday notified the much-hyped anti-superstition law that aims to prevent and eradicate "inhuman evil practices".

According to Social Welfare principal Secretary G Kumar Naik, the state social welfare department has issued a gazette notification and The Karnataka Prevention and Eradication of Inhuman Evil Practices and Black Magic Act, 2017, that intends to protect the common people against "evil" and "sinister" practices, shall come into force with effect from January 4 2020, the government notification issued earlier this month read.

The act seeks to combat and eradicate such inhuman practices propagated and performed in the name of "black magic" by conmen with the sinister motive of exploiting the common people, thereby destroying the social fabric of the society.

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