11th Feb 2020 08:31
(Alliance News) - GKSD Investment Holding SA on Tuesday confirmed it is considering a potential offer for NMC Health PLC, with GK Investment Holding Group SA acting as its adviser.
On Monday, the UAE-focused private hospital operator confirmed it has received "highly preliminary approaches" from private equity firms Kohlberg Kravis Roberts & Co and GK Investment.
GKSD is backed by sponsors of Italian hospital chain Gruppo San Donato.
NMC on Monday had said no proposal has been made by either KKR or GK, and there have been no discussions as to the terms of any possible offer. Further, GKSD on Tuesday confirmed that "there can be no certainty that any offer will be made".
NMC Health shares were trading 3.2% lower early on Tuesday in London at 897.00 pence each, after closing up 32% on Monday. The stock has halved so far in 2020 and is valued at GBP1.89 billion versus GBP5.5 billion a year ago.
NMC Health shares took a hit back in December, when US short selling firm Muddy Waters accused NMC Health of manipulating its balance sheet to understate debt, which the company firmly denied.
On Monday, Muddy Waters had said: "Today's bizarre disclosures about even more pledges and debt validate that the cockroach theory is alive and well - what we found is likely just the tip of the iceberg. As for the notion that NMC might receive private equity bids, it's hard for us to believe they would survive due diligence."
By Evelina Grecenko; [email protected]
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