(Alliance News) - NMC Health PLC on Friday urged Joint Non-Executive Chair Bavaguthu Raghuram Shetty and other investors to clarify their shareholdings in the company, as it laid out complex share dealings made by Shetty.
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 not been independently "verified or confirmed to the company by Shetty."
The resignation of Omeir Bin Yousef, who along with Shetty was suspended from attending the company's board meetings, was announced by NMC separately on Friday. The two earlier on Monday were asked by NMC to "absent themselves from further board discussions" due to incorrectly reporting their holdings to the company and the market.
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.
Bin Yousef and Al Qebaisi were not party to Shetty's pledging of NMC shares, the company said, citing advisers to the investors.
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.
NMC, in its statement, said advisers to Bin Yousef and Al Qebaisi are 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.
Earlier on Monday, NMC Health confirmed "highly preliminary approaches" from private equity firms Kohlberg Kravis Roberts & Co and GK Investment Holding Group. Subsequently, US-based KKR confirmed that it does not intend to make an offer for NMC Health, while, Swiss-headquartered GKSD Investment confirmed it was considering a potential offer for the company.
Shares in NMC Health were down 5.1% at 776.40 pence each in London on Friday afternoon.
By Anna Farley and Tapan Panchal
annafarley@alliancenews.com; tapanpanchal@alliancenews.com
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