UAE- Italian group mulls offer for NMC

  • UAE- Italian group mulls offer for NMC

UAE- Italian group mulls offer for NMC

The stock, which lost nearly half its value last week, rose 32% Monday in London.

Former FBI boss Louis Freeh is leading a separate independent review committee appointed by London-listed NMC to investigate the Muddy Waters allegations.

Private equity firm KKR has ruled out a bid for beleaguered hospital operator NMC Health, a day after the FTSE 100 company said it had been approached by the USA firm. NMC also appears to have paid too much for a stake in Premier Care Home Medical and Health Care, the report alleged.

Shares in NMC have plummeted 70pc in the last two months after it was accused of financial mismanagement by hedge fund Muddy Waters.

On Monday, Muddy Waters had said: "Today's weird 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. Taking the business private might be the best thing to happen to NMC as it has lost credibility with the market and it will take a lot to rebuild trust with investors", Russ Mould, investment director at AJ Bell, said.

'This suggests that the holdings and interests of Dr. B.R. Shetty, H.E. Mr Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Mr Khaleefa Butti Omair Yousif Ahmed Al Muhairi have been incorrectly reported historically to the Company and the market, ' the statement said. The company said the board will make a decision about whether Shetty and Butti should remain as company directors.

However, the statement added that the "announcement does not amount to a firm intention to make an offer and accordingly there can be no certainty that an offer will made, nor as to the terms on which any offer will be made".

With reports that NMC's founder is mulling a return and the company mentioning names of some of the private equity interest that has been said to be circling, Muddy Waters founder Carson Block issued a dismissive response.

NMC's margins are "too good to be true" relative to peers, Muddy Waters, which is shorting the company's stock, also said. "We are unsure how deep the rot at NMC goes, but we do not believe that its insiders or financials can be trusted".

While NMC officials could not be immediately reached for comment on KKR's statement, the healthcare group's founder BR Shetty's spokesperson declined to comment on the developments when Khaleej Times contacted him. It's now the biggest private health-care provider in the United Arab Emirates.