4th Feb 2020 08:52
(Alliance News) - NMC Health PLC on Tuesday said it knows of no specific reason behind the decline in the company's stock price on Monday and expects to report annual results in-line with management's expectations
The UAE-focused private healthcare firm ended as the worst performer in the FTSE 100 on Monday, down 20% at 1,036.00 pence each. The stock, however, is the best performer in the blue-chip index on Tuesday morning, up 7.3% at 1,111.50p each.
"The independent review being undertaken by Freeh Group International Solutions LLC, announced on January 17, 2020, is proceeding. The company's operations continue to perform strongly and the company expects to report full-year 2019 results in-line with management's expectations," NMC said in its response statement to the share price movement.
In January, NMC appointed Freeh Group International Solutions LLC to review allegations made by short-selling firm Muddy Waters Capital LLC.
Freeh Group was founded by a former US Federal Judge and FBI director Louis Freeh.
In December, Muddy Waters decided to short sell shares in NMC over "serious doubts" regarding financial statements.
Muddy Waters then 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 had previously called the allegations "unfounded, baseless and misleading".
By Tapan Panchal; [email protected]
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