(Alliance News) - Embattled hospital operator NMC Health PLC late Monday said it has been notified of several transactions regarding shares held by its former chair and his BRS Capital investment vehicle.
The UAE-focused hospital operator continues to seek clarity from major investors, including co-founder and former joint chair Bavaguthu Raghuram Shetty, in respect to their holdings in the company.
Earlier in February, NMC said it would "urgently seek clarity" about its former chair's "shareholding arrangements" after it received notice his investment company sold GBP111.8 million worth of shares across a series of transactions.
Bavaguthu Raghuram Shetty, founder of the firm, resigned as non-executive chair last month. He had been banned from attending board meetings for inaccurately reporting shareholdings in the company.
In January, NMC asked Freeh Group International Solutions LLC, founded by former US federal judge and FBI director Louis Freeh, and law firm Glaser Weil LLP to provide a independent report addressing allegations raised by short-selling firm Muddy Waters Capital LLC.
The Abu Dhabi-based hospital operator said advisers of now-resigned vice chair Khalifa Butti Omeir Bin Yousef and another investor Saeed Butti Al Qebaisi provided information of their shareholdings in NMC, which NMC said has still not been independently "verified or confirmed to the company by Shetty."
"This information has not as yet been independently verified: Shetty and his advisers are urgently investigating the details and legal basis of this transaction as part of the ongoing legal review," NMC added.
On Monday, NMC clarified details of several transactions made by Shetty, that the company said required regulatory disclosure.
As per information received by the company from advisers of Bin Yousef and Al Qebaisi, around 20.4 million shares were held by Shetty's entity BRS International Holding Ltd on behalf of the two investors pursuant to a memorandum of understanding.
Shetty, under a complex deal of pledging shares against bank loans, transferred 13.5 million shares to First Abu Dhabi Bank with 10.9 million shares free of encumbrance or claim, and 2.6 million shares pledged to United Arab Bank.
NMC said previously Shetty has said the place of the First Abu Dhabi Bank transactions was "unknown", but on Monday said it was London. This was confirmed by First Abu Dhabi Bank.
United Arab Bank subsequently sold 1.9 million shares as security enforcement, leaving 613,312 shares unencumbered by Bin Yousef and Al Qebaisi.
Shetty separately transferred 6.5 million shares to Al Salam Bank Bahrain, of which 6.2 million shares were sold by Al Salam as enforcement of security, leaving 324,210 shares unencumbered by Bin Yousef and Al Qebaisi.
Al Salam Bank, NMC confirmed Monday, sold 760,803 shares in a transaction on February 7 and sold another 5.4 million on February 10, for a total of 6.2 million.
NMC was also able to confirm on Monday that a further 2.4 million shares were sold by First Abu Dhabi Bank on behalf of BRS International between February 11 and February 13.
Bin Yousef and Al Qebaisi have been unable to advise the company to the current position in the remaining 428,571 shares, out of the 20.4 million shares held by Shetty on behalf of the two individuals.
Advisers are also unable to "confirm the current position in relation" to the 11.5 million remaining shares held by First Abu Dhabi Bank and 324,210 shares by Al Salam.
The company said is not able to "independently verify" the information received from the advisers to Bin Yousef and Al Qebaisi and from Shetty.
In December 2019, Al Qebaisi was believed to hold a 17.4% NMC stake. At that time, Bin Yousef was thought to have a 14.7% interest and Joint Non Executive Shetty a 15.9% interest. In addition, 7.3% of shares were believed to belong to joint Bin Yousef vehicle Infinite Investment.
Finally, NMC confirmed, in May 2018, BRS Capital, entered into a funded collar investment with Goldman Sachs International over 7.0 million shares. NMC said this investment was terminated, resulting in Goldman being allocated the shares.
Shares in NMC Health are currently suspended in London.
By Paul McGowan; paulmcgowan@alliancenews.com
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