Health Care

UAE's NMC gets takeover approaches, chairman suspended from board discussions

UAE's NMC gets takeover approaches, chairman suspended from board discussions”

In your inbox before the open, every day.

Private equity firm KKR KKR.N on Tuesday said it does not intend to make an offer for troubled NMC Health NMC.L but Italian-backed GKSD Investment Holding confirmed it could bid. The company is asking its main shareholders for clarity on whether they have pledged any of their holdings as collateral, amid speculation in the market they may have faced a margin call.

Finablr shares, also hit by the Muddy Waters allegations against NMC, were up 7.7% at 77.05 pence. The health care company is conducting an independent review after the hedge fund alleged that the company manipulated its balance sheet and inflated the prices of assets it purchased.

"Today's freakish 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", Muddy Waters' Carson Block said in a statement.

This suggests that the holdings and interests of Dr Shetty, Al Qebaisi and Al Muhairi have been incorrectly reported historically to the company and the market, the statement said.

Dr Shetty and Al Muhairi have informed the company that they remain supportive and long-term investors in the company.

Shetty stepped down as NMC's chief executive in 2017 but remains one of the largest shareholders, with a 15% stake.

NMC Health had on Monday said it had received two preliminary approaches from private equity firms. There can be no certainty that any offer will be made for the Company, nor as to the terms on which any offer might be made.

NMC Health shares took a hit back in December, when U.S. short selling firm Muddy Waters accused NMC Health of manipulating its balance sheet to understate debt, which the company firmly denied. KKR declined to comment, while GK could not be reached.

Reuters reported https://www.reuters.com/article/us-nmc-health-m-a-exclusive/exclusive-two-groups-one-backed-by-chinas-fosun-bid-for-nmc-health-stake-sources-idUSKCN1VB20R previous year that NMC was also the target of two groups, one backed by China's Fosun, looking to buy a 40% stake in it. The company has said the allegations are false and misleading.

NMC's margins are "too good to be true" relative to peers, Muddy Waters, which is shorting the company's stock, also said.

A native of India, Shetty moved to Abu Dhabi in 1973 and founded NMC in the 1970s.

Shares in the United Arab Emirates' largest private healthcare company extended losses to touch session lows after the KKR announcement.

Subscribe now to stay ahead with the most trusted business news source.



Like this

loading...
loading...

Latest


12 February 2020
Gugu Mbatha-Raw Join's Disney+ Marvel Loki Series Cast
Almost no particulars are identified about the sequence, which is at present filming for a focused premiere date in early 2021. In films, she starred in " Motherless Brooklyn ", " A Wrinkle in Time " and " The Cloverfield Paradox ", among other projects.

12 February 2020
2 dolphins found dead in Florida were shot or stabbed, investigators say
Anybody with information regarding these cases are encouraged to contact the NOAA and tips may be left anonymously. Dolphins begin to associate humans and boats with food and then put themselves in unsafe situations to get it.

12 February 2020
Realme X50 Pro 5G with Snapdragon 865 to launch on February 24
As for the pricing, the Realme C3 costs Rs. 6,999 for the entry-level 3GB/32GB variant and Rs. 7,999 for the 4GB/64GB model. Realme is also taking the MWC 2020 center stage along with the other smartphone manufacturers to unveil its next offering.

12 February 2020
SAO Alicization Lycoris in action
Sword Art Online : Alicization Lycoris is the first time players can experience a Sword Art Online anime storyline in-game format. Fans of the anime who have watched Gun Gale Online will recognize a familiar version of Kirito among the customization options .

12 February 2020
Hopes coronavirus 'over by April' in China
It is suspected to have come from a market that illegally traded wildlife in Hubei province's capital of Wuhan in December. Japanese officials on Wednesday said another 39 people had tested positive for the coronavirus, bringing the total to 175.

12 February 2020
The Rock Reacts to his Daughter Signing With WWE
Following her father's footsteps, this could be the beginning of yet another electrifying era from the Johnsons. In his post, The Rock wrote that Simone's journey "will always be [hers] to create, earn & own". "So proud.

12 February 2020
LPG price hiked by ₹144.5 per cylinder, steepest since January 2014
The oil marketing company had hiked the prices of commercial LPG cylinders (19 kg) by up to Rs 225 per cylinder on 1 February. The new price of the LPG cylinder is Rs 850.50 in Kerala, Rs 146.50 higher than the old rate.

12 February 2020
Chancellor Angela Merkel's Chosen Successor Steps Away, Adding To German Uncertainty
Merkel was outraged that the post-war consensus among established political parties of shunning the far-right had been ignored. However, whether Germany's ruling coalition will last and Merkel will hold on until her term is up remain open questions.

12 February 2020
Courteney Cox is twinning with Jennifer Aniston in birthday post
Reese Witherspoon, who stars with Jen in " The Morning Show ", commented with three laughing-crying emojis. "I love this photo". The " Friends " star, who turned 51 yesterday, shared the "birthday surprise" with her 27.7 million followers on Instagram.

12 February 2020
Date confirmed for Man City-West Ham clash
Should they qualify for the FA Cup quarterfinals, their match against Chelsea will also have to be moved to another date. Perhaps the FA now, will pay heed to both Klopp and Guardiola's complain about too much football.