3rd Mar 2020 17:56
(Alliance News) - NMC Health PLC on Tuesday said the holdings of former vice chair Khaleefa Butti Omair Yousif Al Muhairi and investor Saeed Butti Al Qebaisi fell significantly in February.
The UAE-focused hospital operator said that in the period from February 21 to March 1, Yousif's stake in the company fell to 3.1% from around 20%. Qebaisi's holdings dropped to 5.2% from over 11%.
This statement from NMC comes as the company continues in its process to "seek clarity" regarding the holdings of major investors, including those of co-founder and former joint chair Bavaguthu Raghuram Shetty, in respect to their holdings in the company.
The trouble started in December, when Muddy Waters raised doubts over NMC's financial statements, including reported profit and levels of debt.
NMC then attempted 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.
In January, NMC asked Freeh Group International Solutions and law firm Glaser Weil to provide a independent report addressing the allegations.
Prasanth Manghat was fired as chief executive after the review revealed potential discrepancies in the company's finances and Chief Operating Officer Michael Davis assumed the role of interim CEO.
Shetty, founder of the firm, resigned as non-executive chair in February after being banned from attending board meetings for inaccurately reporting shareholdings in the company.
NMC shares are currently suspended, as the UK Financial Conduct Authority has commenced a formal investigation into the Abu Dhabi-focused hospital operator.
Shares in the company were last quoted at 938.40 pence each.
By Ife Taiwo; [email protected]
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