Shetty resigns from NMC Health board
Lawyers reviewing status on his exclusion from meetings
Dr B.R. Shetty, founder of NMC Health, has resigned from the board of directors. This comes after he was excluded from board discussions for possibly misrepresenting his shareholdings in the company.
Shetty stepped down with immediate effect, along with chief investment officer Hani Buttikhi and board member Abdul Rahman Basaddiq, the company has said.
Last week, NMC removed Shetty from board meetings on concern he may have misstated his stake.
This is the latest fallout for the UAE’s largest healthcare operator after an investment firm, Muddy Waters, questioned NMC’s balance-sheet and that it had inflated the prices of companies it acquired.
On Friday, the vice-chairman — Khalifa Al Muhairi — had resigned as well.
Legalities
Speaking to Gulf News, Shetty said his lawyers are reviewing the legal status on his exclusion from board meetings. He added that further steps on the legal side will be taken up once the status is clear.
In a comment, Shetty said: “As you will have seen from recent market disclosures, we have initiated a full legal review of our shareholdings in NMC Health plc in order to provide greater clarity and transparency to the market, as well as to our other stakeholders.
“In order to assist us and expedite the completion of this process, we have engaged third-party legal and financial advisers. We are also in consultation with the appropriate regulatory authorities in the UK.
“During this review process, we will continue to disclose information to the market in as timely a fashion as possible. I
have resigned from the Board of Directors of NMC Health plc to allow the Board to fully execute its governance and other responsibilities in as efficient a manner as possible.”
NMC shares lost almost half their value in the first week of
February on speculation the company’s main investors were facing a “margin call”, in which banks seize shares pledged as collateral.
According to Bloomberg, NMC had earlier confirmed that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders.
The banks later sold more than eight million shares as “enforcement of security,” NMC said.