Courtesy of jredd on ADVFN - GET THE MARKET OPEN!
By Davide Barbuscia, Hadeel Al Sayegh and Stanley Carvalho
DUBAI/ABU DHABI (Reuters) - Two groups, including one backed by China's Fosun (HK:0656), have made competing offers to buy a 40% stake in London-listed NMC Health (L:NMC) worth up to $1.9 billion, four sources familiar with the deal said.
The target stake is jointly owned by the chairman of Abu Dhabi-based investment firm KBBO Group, Khalifa Butti Bin Omeir, UAE-based businessman Saeed Bin Butti Al Qebaisi, and Infinite Investment, a vehicle linked to the two men.
The deal, which shows the growing interest of Chinese companies in the Middle East, could allow the UAE-based investors to realize significant gains after they bought the stake in 2011 for $1 billion.
However, they may choose to retain at least some of their current holding in the company, the sources said. NMC Health's businesses include an extended portfolio of hospitals, day surgery centers, clinics and pharmacies across the UAE.
Its single biggest shareholder, B.R. Shetty, who is also the founder of the company, is not planning to sell his 19% stake, according to the sources.
The group is looking to pay a premium to NMC Health’s market price, two of the sources said. The stock is down about 30% year-to-date.
Neither NMC Health nor KBBO, which is representing the group of Emirati investors, would comment directly on the bids.
Prasanth Manghat, chief executive of NMC Health, said the firm is excited about its future prospects. "Management is committed to all shareholders, and all actions if pertaining to us will be in best interest of all shareholders," he said.
A spokesman for KBBO said the shareholders "are committed for the long term and want to see value for the company".
Fosun, whose businesses include pharmaceuticals, industrial operations, asset management, and insurance, could not be immediately reached for a comment.
Good luck to those shorters placing their faith in AQR; less than 3 trading hours until the results :)
But while AQR’s long-only funds have rallied in 2019, its alternative risk premia funds — which make long-short bets on various trends in markets — have continued to struggle.
AQR’s recent fortunes have surprised the hedge fund community since, aside from the 2008 financial crisis, the company experienced strong growth and performance, and picked up multiple accolades for its distinctive investment style.
According to a person working at AQR, its Delta strategy — one of the company’s most consistently successful fund products in the last decade — is a particular cause for concern. Delta, a diversified portfolio of hedge fund strategies, fell 10% in 2018 and is down more than 2% this year.
The Style Premia Alternative fund, another AQR long-short alternative investment fund with a previously outstanding performance record, is down 12.8% over the 12 months to April 30, according to figures from AQR’s website. The firm’s Alternative Risk Premia fund, meanwhile, slumped 1.2% in April and is down nearly 5% in the last year.
Stock Market is no place for nervous investors. Move all your money into a bank and earn your circa 1% interest or buy Premium Bonds if you want to be a tad more daring. For me, happy to be invested in a FTSE 100 company with a growing market, esp IVF (over 8 million IVF children have been born, and over 2.5 million cycles are being performed every year worldwide) and a dividend that is growing year on year and matches most bank rates.
Exactly, and if Costain can gain circa 10% today by issuing results that confirmed their profits warning in June and revised FY estimates, then NMC who has seen its share price plummet based on no profit warning (on the contrary has told shareholders an already healthy forecast has improved), then I look forward to tomorrows figures with optimism rather than trepidation
Here's some more info about the event
What do you think?
KNOW YOUR OPPONENTS AQR who have led the short attack have done so on the basis of a report from "The Analyst" based on a forecast of slowing growth and rising debt; their shorting target appears to be 16.60 hTTps://www.thetimes.co.uk/article/hedge-funds-target-gulf-hospitals-operator-nmc-jth9rr2pc# This report is at odds with the Mar 19 Full Year RNS which stated that "management remains confident with near to medium term outlook, as reflected by the guidance of continued strong growth provided for 2019 (+22-24% YoY revenue growth and +18-20% YoY EBITDA growth)". On the debt front, at 2018 year-end net debt-to-EBITDA stood at 3.1x (2017: 2.9x). The outlook for net debt in the Full Year RNS was for Year-end net-debt to EBITDA to further reduce to 2.2-2.4x. Since the EOY RNS, the closing of KSA Joint Venture transaction and 2019 earnings guidance update end of May upgraded the EBITDA guidance:to USD 575-585m (previous guidance: USD 566-576m). We have subsequently been informed on the 8th August by RNS that NMC notes the recent share price weakness and confirms that it expects to report that, after a good performance in the first half of 2019, trading in the business remains in line with management expectations on all key metrics including revenue, EBITDA, net income, leverage, cash flow conversion and working capital. Full year guidance remains as previously stated. This resulted in Barclays lifting its price target to 4,275p from 4,100p on Friday 9th August, saying first-half results later in the month should be a positive catalyst, particularly after recent share price weakness. Add in the confidence shown by the CEO purchase of shares just before the close period and I personally would rather be long than short on this share at the current share price with just 3 trading days left to the Half Year results but DYOR
EGM not too far away I suspect. Meanwhile commercial worth of Federated Wireless promises to be considerable
Correct link available now
Good point extrader, need to wait for the graphene revolution to lighten the load. In the meantime could always consider balloons, after all plenty of hot air on this BB and spare ballast to offload as well. Eh, what, nnnooooooooo didn't mean meeeeeeeeeeeeeeeeeeeeeeeeee!
I have just the aircraft for you Wellwell
Who said I was confident? So far Bigdish has over promised and under delivered but they now have a stronger team in place and need to be given the time to show they can turn things around. September for me is make or break, the numbers of restaurants will either accelerate exponentially in which case happy days, or they wont and we will be into the Christmas season and talking about next year before any positive signs start to appear. What I do find tedious is counting whether there are one, two or three less restaurants at this point in time because it is meaningless.
Applesauce you tedious toad the time to judge the success or otherwise of the recruitment campaign and concept is September onwards when the tourism season has finished, there are plenty of empty tables to fill, and the territory managers are in place and trained endof!