21st Feb 2020 08:38
(Alliance News) - NMC Health PLC on Friday reiterated that it continues to seek clarity from major investors, including co-founder and former joint chair Bavaguthu Raghuram Shetty, in respect to their holdings in the company.
The UAE-focused hospital operator added that it has received shareholding notifications from former vice-chair Khaleefa Butti Omair Al Muhairi and Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi, though these have not been independently verified.
Shares in the company were down 1.8% at 841.80 pence each in London in morning trade.
As per the shareholding notifications received by NMC, Al Muhairi owned just shy of a 20% stake between the period from May 31, 2017, to February 17, 2020. Al Qebaisi had just over an 11% stake during the same period.
NMC said the shareholding notifications are being published in the form it received them and the company is not able to independently verify the information.
"The company continues urgently to seek clarity from each of Dr Shetty, Khaleefa Bin Butti and H.E. Saeed Bin Butti in relation to their respective shareholdings, and encourages Dr Shetty, Khaleefa Bin Butti and H.E. Saeed Bin Butti, and their advisers, to agree the legal position in relation to their ownership of the ordinary shares in question without further delay," the FTSE 100 listed company added.
The Abu Dhabi-based company has been trying to unravel shareholdings of investors Shetty, Al Qebaisi, and Al Muhairi following the revelation of a complex set of share transfers between the trio.
The share dealings between the trio involved Shetty pledging NMC shares to banks as loan securities, a deal in which Al Qebaisi and Omeir Bin Yousef were not part of.
Short-selling firm Muddy Waters Capital LLC in 2019 raised doubts over NMC's financial statements, including reported profit and levels of debt, and a USD107.4 million investment by NMC in the redevelopment of NMC Royal Women's Hospital, previously known as Brightpoint Royal Women's Hospital.
Muddy Waters' claims were disputed by NMC, which has previously called the allegations "unfounded, baseless and misleading".
In January, NMC asked Freeh Group International Solutions LLC, founded by former US federal judge and FBI director Louis Freeh, to "provide a completely independent, unbiased, comprehensive and transparent report that will address all of these allegations".
On Wednesday, activist investor Krupa Global Investments said it is no longer interested in taking a "significant" stake in NMC.
"Mr BR Shetty and Butti family built the NMC Health company on the basis of their good know-how and their good relationships in Middle East, so KGI considers these recent top management representatives' resignations as unacceptable and this move is not correct in our opinion. Although KGI has great confidence in NMC's management, its practices and operations, we are sure that Mr BR Shetty and Mr Khalifa Butti would have great impact on company governance, performance and future relationships in Middle East," KGI said in a statement.
Separately, Swiss-headquartered GK Investment Holding Group previously has confirmed it was considering a potential offer for NMC.
By Tapan Panchal; [email protected]
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