(Sharecast News) - NMC Health announced the launch of an independent review on Monday, following what its board described as an "attack" on the company last week from short seller Muddy Waters.
The FTSE 100 hospital operator, focussed on the Middle East, had issued a rebuttal after the release by Muddy Waters, saying it was "disappointed" with the "material and ... unwarranted" share price reaction.
It explained on Monday that its independent audit committee and its new independent disclosure committee monitored and reviewed disclosure and financial reporting, to ensure that it was accurate and complete.
In addition to the ongoing governance structure and the statements it had made in a bid to provide additional reassurance to shareholders, NMC Health said it would be launching an independent third-party review, undertaken by an unnamed leading accounting firm, to review the assertions made by certain third parties.
The review would be overseen by a committee made up of a majority of independent non-executive directors of the company, which was being formed.
"We are confident that this review, when complete, will be entirely confirmatory of the disclosures provided by the company to date," the NMC Health board said in its statement.
"We will also be progressing relevant legal and regulatory options following the actions taken by third parties to mislead the market and manipulate the share price.
"The company believes that the current share price is not a fair reflection of the value of the company which has a consistent track record of strong growth and cash generation."
The NMC Health board said it would keep investors updated as it progressed its initiatives in the coming weeks.
At 0916 GMT, shares in NMC Health were up 23.07% at 1,600.5p.
24 Jan 2020 07:45
NMC Health falls as Dubai's Emirates NBD Bank sells stake
(Sharecast News) - NMC Health was in the red on Friday after Dubai's Emirates NBD Bank sold just under 2.2 million shares in the UAE healthcare provider in a placing.
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