The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Are things really that bad or is it all overblown....
As per the FY2018 report:
Borrowing (debt) -550m
Inventory - 250M
Cash in bank - 325M
Tangible assets - 850M (have gone up significantly since 2018)
Intangible assets - 1.6B
secret off-balance sheet financing by sherry and his buddies without boards a authorisation - 335M
Now Make up your own mind as to, if, all this hype and negativity around NMCs finances is justified!?. Seems like Moelis is simply hired as a backfill to cover for the sick CFO and lack of folks in the finance dept to probably assist with Freeh investigations and sort payroll etc. People might be making a mountain out of a molehill here. Until I hear anything formally from NMC, not buying into any of this made up news crap! IMHO company will do well overtime, firings the dodgy BRS & his buddies and CEO who turned blind eye to the whole thing was absolutely the right thing to do. This should come back over £10 when this ones out of suspension in April. Solid Takeover interest from 3 organisations Mudabala, Rasmala and GKI is no confidence, this is a solid growth healthcare business. UAE govt isn’t let this disappear, they need it!!
As per the FY2018 report:
Borrowing (debt) -550m
Inventory - 250M
Cash in bank - 325M
Tangible assets - 850M (have gone up significantly since 2018)
Intangible assets - 1.6B
secret off-balance sheet financing by sherry and his buddies without boards a authorisation - 335M
Now Make up your own mind as to, if, all this hype and negativity around NMCs finances is justified!?. Seems like Moelis is simply hired as a backfill to cover for the sick CFO and lack of folks in the finance dept to probably assist with Freeh investigations and sort payroll etc. People might be making a mountain out of a molehill here. Until I hear anything formally from NMC, not buying into any of this made up news crap! IMHO company will do well overtime, firings the dodgy BRS & his buddies and CEO who turned blind eye to the whole thing was absolutely the right thing to do. This should come back over £10 when this ones out of suspension in April. Solid Takeover interest from 3 organisations Mudabala, Rasmala and GKI is no confidence, this is a solid growth healthcare business. UAE govt isn’t let this disappear, they need it!!
As per the FY2018 report:
Borrowing (debt) -550m
Inventory - 250M
Cash in bank - 325M
Tangible assets - 850M (have gone up significantly since 2018)
Intangible assets - 1.6B
secret off-balance sheet financing by sherry and his buddies without boards a authorisation - 335M
Now Make up your own mind as to, if, all this hype and negativity around NMCs finances is justified!?. Seems like Moelis is simply hired as a backfill to cover for the sick CFO and lack of folks in the finance dept to probably assist with Freeh investigations and sort payroll etc. People might be making a mountain out of a molehill here. Until I hear anything formally from NMC, not buying into any of this made up news crap! IMHO company will do well overtime, firings the dodgy BRS & his buddies and CEO who turned blind eye to the whole thing was absolutely the right thing to do. This should come back over £10 when this ones out of suspension in April. Solid Takeover interest from 3 organisations Mudabala, Rasmala and GKI is no confidence, this is a solid growth healthcare business. UAE govt isn’t let this disappear, they need it!!
Deos - this whole debt things as reported by Reuters today, might just be to do with the contractual guarantee in case of non-payment or default in case companies owed by related parties weren't able to meet their contractual obligations to credit providers. These balances were approx $335m at the end of the year. This doesn't, by any means, mean that the company owes $335m. As long as the entities owed by the related parties pay their debts, which they are, there is basically no financial impact. This will come back with vengeance, when it comes out of suspension in April IMO
@Shaml - no way Sherlock haha! You think? Old news? Only thing is people
Might be making Mole out of nothing. We just don’t have enough facts to come to any sort of conclusions. Over 50% stock is now
Owned by funds and banks, clearly they know something you and I don’t.
You are welcome Mrd, remember no doom monger on here knows anything more then we do at this stage. We just have to allow things to fall into place, this all debt restructuring this based off of 1 very limited detail News report (like they have always been true - negative news sell), this debt thing might turn out to be something minor in the end like to do with BRS and his buddies companies shenanigans, one of the TO bidders make an offer and this could all change in a day. For now, keep calm and carry on until end of April, when some formal news from NMC start rolling in. Nobody can do anything up until then.
This might not all be that bad as shorters are portraying it here, this could well be a very smart move of NMCs part, suspend the shares, get all the bad news out and their house in order and with at least 3 confirmed takeover bidders in the mix currently, come back with a vengeance at the end of April. This could easily open at least 50% higher at the end of April! Especially with huge takeover interest in this high growth healthcare business, it happened at AA and SP suspended at 229 and now trading at 1850, go figure!!
The NMC simply provided a contractual guarantee in case of non-payment or default in case companies owed by related parties weren't able to meet their contractual obligations to credit providers. These balances were approx $335m at the end of the year. Nothing unusual if you think about it, companies do it all the time. The only problem is that this hasn't been approved by the board and contingent liability as they call it disclosed in the notes to the accounts. Normally those disclosures give the users of the accounts an estimate of the potential financial effect and better understanding of any associated risks. This doesn't, by any means, mean that the company owes $335m. As long as the entities owed by the related parties pay their debts, which they are, there is basically no financial impact. The facilities will also "no longer be made available for further supplier financing" so no future impact possible. It could be as simple as a guarantee and support for the smaller entities with no sufficient credit rating & cash flow available in order to enable them to grow quicker & operate on the higher level. There is no mention of any defaults & inability to pay obligations by those businesses. They may as well be operating successfully and running at a profit. Plus their stock is under lock down, which can be used to pay for any potential debts. Obviously the guarantees should have been approved by the board & disclosed in accordance with the Listing Rules. This will come back with vengeance, when it comes out of suspension in April IMO
I am in the same boat as you hsdeo. Don’t think this will go under, it’s all speculation at the moment and with every new news article and no formal announcements from NMC ( which are not likely for next few weeks, while they are sorting out their house), one day things seems to be heading in the positive direction and another day it’s all negative. Nobody knew this was coming up until Wed eve, at which isn’t stock had jumped 20%+ WOW. Things might not even be as bad as some of shorters here are posting to be. We just need to be patient and see what happens next, ya jot like anyone on this BB has any control over thIS situation, shorters and LTHs alike. So, everyone should give it rest and let the things play out their normal course. This could very well open above £11-12, it has happened before, just google it and it could happen again! Thinking Anglo, RRE is ESC etc.
How long is the process? Does it cost us any money to sign up? Can only folks in the US join the class action it can it be anyone who owns NMC shares globally?
From Bloomberg: Abu Dhabi Wealth Fund Weighs Deal in Shetty’s Troubled NMC By Archana Narayanan and Dinesh Nair February 29, 2020, 7:10 AM EST Updated on February 29, 2020, 11:38 PM EST Mubadala held early talks for stake in U.A.E. health-care firm NMC CEO Prasanth Manghat was dismissed in management overhaul relates to Abu Dhabi Wealth Fund Weighs Deal in Shetty’s Troubled NMC Source: Google Abu Dhabi wealth fund Mubadala Investment Co. is considering a potential investment in NMC Health Plc -- a sign the emirate is keen to address the worsening crisis at the troubled hospital operator, people familiar with the matter said. Mubadala has held early discussions to look at a range of options regarding the Middle East’s largest health care provider, including buying a stake and taking a board seat, the people said, asking not to be identified as the matter is private. While discussions are ongoing, there can be no guarantee of a transaction given the complex issues facing the company, the people said. Representatives for Mubadala and NMC declined to comment. Aside from Mubadala, investors linked to Italian hospital operator Gruppo Ospedaliero San Donato Spa have said they’re studying a possible offer for the company and are working with financial advisers.
Business is still operating as normal and surely is profitable, this will hopefully bounce back over time. We have to stop speculating and wait for the formal news to come out from NMC over the coming weeks. .
NMC Al Zahra Hospital in Sharjah wins three award for quality healthcare solutions
Feb 17, 2020
Al Zahra Hospital in Sharjah has won three awards at the Ministry of Health and Prevention (MoHAP) Innovation Awards.
The awards were held to recognise medical institutions that work towards offering quality health care solutions to their patients. The hospital bagged the second spot under the category of ‘Most Innovative Hospital,’ second position for a hospital with the ‘Most Innovative Physician,’ and stood second in the ‘Most Innovative Nurse and Midwife division.’
Over the years, the hospital has demonstrated some of their notable innovations in engaging staff that has helped remarkably improve their quality of services.
Dr. Sherief Elsayed, Consultant Spinal Surgeon at Al Zahra Hospital Sharjah was presented with the Innovative Physician Award, for his successful introduction of Patient-Specific 3D printing into the operative correction of high-risk Scoliosis deformity.
The nursing team represented by Shazia Amin, Meera Akbar and Saleema Shoukat Ali, collected the award for the Most Innovative Nurse and Midwife.
Established in 1981, Al Zahra Hospital Sharjah, is one of the oldest private general hospitals in the UAE
Very interesting indeed that Rasmala is now mulling a takeover bid as well! This is a very successful growth business, no wonder so many companies are interested in grabbing a stake in this. I don't think board and Execs will entertain any offer under £12, its worth that and then some in just assets (£2B+) all day long!!
omny.fm/shows/businessbreakfast/20200212-0720-eye-bb-rasmala-investment-bank-ali-t
From Bloomberg:
“Abu Dhabi Wealth Fund Weighs Deal in Shetty’s Troubled NMC�
By Archana Narayanan and Dinesh Nair
February 29, 2020, 7:10 AM EST
Mubadala held early talks for stake in U.A.E. healthcare firm
NMC CEO Prasanth Manghat was dismissed in management overhaul
relates to Abu Dhabi Wealth Fund Weighs Deal in Shetty’s Troubled NMC
Source: Google
Abu Dhabi wealth fund Mubadala Investment Co. is considering a potential investment in NMC Health Plc -- a sign the emirate is keen to address the worsening crisis at the troubled hospital operator, people familiar with the matter said.
Mubadala has held early discussions to look at a range of options regarding the Middle East’s largest health care provider, including buying a stake and taking a board seat, the people said, asking not to be identified as the matter is private.
Aside from Mubadala, investors linked to Italian hospital operator Gruppo Ospedaliero San Donato Spa have said they’re studying a possible offer for the company and are working with financial advisers.
Hi - Newbie here.
IMHO, I Don’t think Arabs are going to let the largest healthcare company in the ME go down. With Rasmala, Mubadala and GKI Interested in taking this over, there could indeed be some good news on the horizon. Truth is nobody knows, what’s going to happen here. Only time will tell. Really hope, when this comes back in April, it opens above £10.