Arab News reports that NMC Health (OTC:NMMCF N/A) founder and non-executive chairman B.R. Shetty, director Abdulrahman Basaddiq and executive director and chief investment officer Hani Buttikhi have resigned.
UK stock market regulators are investigating the company, the largest private health insurer in the UAE, triggered by Mr. Shetty’s inaccurate disclosure of his ownership stake. The company subsequently disclosed “a series of complex shareholder dealings” involving the founder and another top investor, Saeed Butti Al-Qebaisi.
Noted bear Carson Block of Muddy Waters says, “We strongly suspect that today’s resignations are due to more than misreported share ownership. We believe the share ownership and pledge debacle is a symptom of systemic rot and corruption at NMC. We note in particular that resigning director Basaddiq had been a partner at NMC’s auditor, EY, for many years and we remind investors that we voiced concerns about the relationship between NMC and EY.“
Shares were up 5.5% in London today.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.