(Alliance News) - Shares in NMC Health PLC sank on Wednesday after activist investor Krupa Global Investments said it would not be taking a strategic stake in the embattled UAE healthcare provider.
The stock was down 7.3% at 783.00 pence late Wednesday, the worst performer in the FTSE 100 index.
KGI said Wednesday said it is no longer interested in taking a "significant" stake in NMC following the resignation of Co-Chair Bavaguthu Raghuram Shetty and two other executives on Monday, as well as its executive vice-chair Khalifa Al Muhairi last Friday.
On its website on Wednesday, KGI said following the resignation of the two men - Shetty and Al Muhairi - it had "evaluated the current situation is not in line with our strategy to take a significant stake in NMC Health".
"Mr BR Shetty and Butti family built the NMC Health company on the basis of their good know-how and their good relationships in Middle East, so KGI considers these recent top management representatives' resignations as unacceptable and this move is not correct in our opinion. Although KGI has great confidence in NMC's management, its practices and operations, we are sure that Mr BR Shetty and Mr Khalifa Butti would have great impact on company governance, performance and future relationships in Middle East," KGI said in a statement.
In December, US short selling firm Muddy Waters Capital accused NMC of manipulating its balance sheet to understate debt, which the company firmly denied. Since then the stock has suffered from volatile swings as NMC has strived to restore its reputation among investors.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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