Setback to DK Shivakumar as HC refuses to stay ED summons

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.

Alappuzha, Jan 9: The houseboat of Nobel Laureate Michael Levitt was blocked in the backwaters here for some time by trade union activists, who were on a nationwide strike against the Centre's "anti-labour" policies on Wednesday.

Michael Levitt, an American-British-Israeli biophysicist and a professor of structural biology at the Stanford University in the United States, said the incident sent a bad message to tourists.

Levitt, who was in Kerala as a state guest, also said he felt as if a bandit had stopped his wife and him at gunpoint. Police said Levitt, who received the 2013 Nobel Prize in Chemistry, was in Alappuzha with his wife and they were stopped by the protesters near Kainakary.

"Being stopped by criminals on the backwaters sends a very bad message to tourists. It is as if a bandit stopped us at gunpoint and delayed us under the threat of force for one hour," Levitt wrote in an email to his tour agent at Kottayam.

In the email, which was later released to the media, he also said the person who blocked them "ignored all arguments that tourists were exempted" from the strike.

"This person, who did this, ignored all arguments that tourists were exempted and that I am a VIP guest of the Kerala government. He was obviously acting, knowing that he was safe from prosecution. Sadly, this makes me fear that India is sinking into lawlessness," Levitt wrote in the email.

The police registered a case after the houseboat owners filed a complaint in this regard.

Reacting to the incident, state Tourism Minister Kadakampally Surendran said the government would take strong action. "Strong action will be taken against those anti-social elements who stopped the boat. Levitt was here as a guest of the state government. The government had made it clear that the tourism industry was exempted from the strike," he said.

Trade union leaders had also announced that the strike would not affect the tourism industry.

Ten trade unions, including the INTUC, the AITUC and the CITU, had called for the nationwide strike to protest against the labour reforms, FDI, disinvestment, corporatisation and privatisation policies of the Centre and press for a 12-point demands of the working class, relating to minimum wage, among others.

Mangaluru, May 25: D V Sadananda Gowda, Union Minister for Chemical and Fertilizer, has once again written to the Ministry of External Affairs urging to take steps to operate more repatriation flights from Gulf countries to Karnataka. 

In his second letter in 10 days addressed to Subrahmanyam Jaishankar, Union Minister for External Affairs, expressed regret over not giving due priority for the repatriation of Kannadigas in the middle east during the extended second phase of Vande Bharat Mission. 

"I shall be grateful if you could personally intervene and instuct the concerned in arranging flights to Mangaluru and Bengaluru from Gulf countries in existing schedule itself," Mr Gowda urged Mr Jayashankar.