NMC in turmoil as vice-chairman resigns
Al Muhairi quits after being excluded from board meetings
NMC Health Plc said its vice-chairman resigned after he was excluded from board discussions for possibly misrepresenting his holdings in the company.
Khaleefa Butti Omair Yousuf Ahmad Al Muhairi stepped down with immediate effect, the company said. Earlier this week, NMC removed Butti and Chairman Dr. B.R. Shetty from board meetings on concern they may have misstated their stakes.
This week has been a heady one for the company as Kohlberg Kravis Roberts & Co. announced it doesn’t plan an offer after NMC said the private-equity firm made an approach. GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for the London-listed company.
The stock has lost twothirds of its value since mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired. NMC has said its board plans to vote whether Shetty and Butti could remain as company directors.
NMC has hired former FBI Director Louis Freeh to conduct an independent review.
NMC subsequently said yesterday that there had been a series of complex shareholder dealings involving Shetty, Bin Yousuf and another top investor, Saeed Butti Al Qebaisi.
The company said Bin Yousef and Al Qebaisi had notified them that some of their shares had been pledged as security for loans by Shetty in an arrangement “they were not party” to. “The company continues urgently to seek clarity from Dr. B.R. Shetty, Khalifa Bin Butti and Saeed Bin Butti in relation to the above arrangements and their respective shareholdings,” NMC said.
Al Qebaisi and Bin Yousef yesterday said that an estimated 26 million of the 58.5 million shares they hold have been pledged against loans.