KKR rules out bid for NMC as woes deepen

NMC health has plunged deeper into crisis after a potential suitor denied an interest in the hospitals provider.

In an embarrassing rejection, private equity firm KKR, which had been touted by NMC as a possible buyer, said it had no intention of making an offer, just a day after NMC said it had received ‘approaches’ from KKR and investor GKSD.

GKSD confirmed it had made an approach and was now ‘considering an offer’ for the FTSe 100 company.

NMC is reeling from allegations of financial mismanagement and revelations this week that its billionaire founder may have misreported how many shares he owns. The stock fell again yesterday, by 16pc, or 148p, to 778.2p, erasing some of the gains made on Monday when KKR and GKSD’s interest was revealed.

The shares are down more than 70pc since short seller Muddy Waters cast doubt on NMC’s accounting practices in December.

Under City takeover rules, GKSD, backed by sponsors of Italy’s private hospital chain Gruppo San Donato, now has until 5pm on March 9 to make a firm offer.

NMC faces a possible probe by the Financial Conduct Authority over confusion about shares held by founder

Bavaguthu Raghuram Shetty, 78, who is worth an estimated £1.2bn. he started the firm in 1975 but has been forced to step back from its board while an investigation tries to establish exactly what his stake is.

That followed revelations that he had struck an agreement with fellow top shareholders Saeed Bin Butti Al Qebaisi and Khalifa Bin Butti Al Muhairi to hold some shares on behalf of the two men.