(Alliance News) - NMC Health PLC shares fell further after the Financial Times on Friday reported the UAE-focused private healthcare firm held talks to raise EUR200 million of off-balance sheet debt to fund new hospitals.
Citing draft document deals dated during the spring and summer, the FT reported that NMC planned to raise the loan through a Dubai entity, to fund the construction of hospitals as it seeks to continue its aggressive expansion in the Middle East.
The FT said this Dubai project company would borrow the EUR200 million from a financing vehicle in Luxembourg, backed by shares in two of NMC's existing hospitals in the UAE.
NMC has come under increased scrutiny from analysts, investors and short-sellers this year about its apparent use of off-balance sheet financing techniques, which do not count toward its official debt levels.
https://www.ft.com/content/c3469f08-2231-11ea-b8a1-584213ee7b2b
NMC shares dropped on Tuesday after short selling firm Muddy Waters Capital LLC said it had shorted the stock, commenting: "We have serious doubts about the company's financial statements, including its asset values, cash balance, reported profit, and reported debt levels."
NMC on Thursday hit back saying the Muddy Waters report was "false" and "misleading".
NMC shares were down 19% at 1,242.00 pence, by far the worst performer in the FTSE 100 on Friday and have almost halved since Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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