(Alliance News) - Shares in NMC Health PLC were suspended from trading on Thursday as the company grapples with uncertainty over the shareholding of its former chair.
The Abu Dhabi-focused healthcare firm, fresh from ousting its chief executive on Wednesday, said it has agreed for a temporary suspension of its shares "to ensure the smooth operation of the market".
"The company is focused on providing additional clarity to the market as to its financial position and to restoring its admission to trading," NMC added.
Former CEO Prasanth Manghat was fired after an independent review revealed potential discrepancies in the company's finances. Chief Operating Officer Michael Davis assumed the role of interim CEO.
On Wednesday, NMC said the probe found discrepancies and inconsistencies in ledger entries and bank statements.
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 earlier this 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.
Muddy Waters in 2019 raised doubts over NMC's financial statements, including reported profit and levels of debt, and a USD107.4 million investment by NMC in the redevelopment of NMC Royal Women's Hospital, previously known as Brightpoint Royal Women's Hospital.
The stock closed 6.6% higher at 938.40 pence each on Wednesday in London as investor Richard Chandler's Clermont Trust raised its stake in the embattled company.
By Eric Cunha; ericcunha@alliancenews.com
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