17th Jan 2020 07:55
(Alliance News) - Private healthcare group NMC Health PLC on Friday said it has called upon a firm founded by a former US Federal Judge and FBI director to review allegations made by short-selling firm Muddy Waters Capital LLC.
NMC turned to Freeh Group International Solutions LLC, founded by Louis Freeh, to "provide a completely independent, unbiased, comprehensive and transparent report that will address all of these allegations".
Freeh was head of the FBI, the US's intelligence and security arm, between 1993 and 2001 and had a stint as the assistant US attorney in the country's department of justice.
NMC said: "The committee is undertaking an independent review of all allegations, focusing initially on confirmation of the group's cash balances as at December 15, 2019. The committee intends to publish findings of the review into all primary allegations made, particularly all those of a financial nature, in advance of the release of the company's 2019 financial results."
In December, Muddy Waters decided to short sell shares in UAE-focused NMC over "serious doubts" regarding financial statements.
Muddy Waters said: "We have serious doubts about the company's financial statements, including its asset values, cash balance, reported profits, and reported debt levels."
Short selling is an investment or trading strategy that speculates on the decline in a stock.
NMC has previously called the allegations "unfounded, baseless and misleading".
NMC shares closed flat at 1,441.50 pence each in London on Thursday. Its share price rapidly fell following the Muddy Waters report. On December 16, the day before the allegations were made, its stock closed at 2,585.00p.
By Eric Cunha; [email protected]
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