Member Info for E_AL

Moody’s report was released one month before MW alleged report .. it doesn’t look fraud to me :

“ RATINGS RATIONALE
NMC's Ba1 CFR continue to factor:

(1) its strong business profile as the largest healthcare provider in the United Arab Emirates, Government of (UAE, Aa2 stable) by revenue;

(2) the quality, stability and solid track record of NMC's operations, which offer world-class care, notably for in vitro fertilisation and long-term care facilities. The diversification associated with NMC's business profile is enhanced through its distribution business, where it holds sole rights for a number of noteworthy brands, including Nestle, Nivea and Pears; and

(3) NMC's strong liquidity profile underpinned by the company's high cash balances of $568 million as of June 2019 and free cash flow generation (as adjusted by Moody's) for the last three years.

At the same time, the ratings take into consideration NMC's small scale of operations and high revenue concentration, with ten facilities representing 71% of EBITDAR as of 30 June 2019. ”

adzy2k11, could you please stop spreading panic among PIs .. I don’t this you did 1/100 of the researching all the iis did before investing here , LSE/FCA wouldn’t allowed it to be listed on ftse100 if they felt it was a fraud, HSBC wouldn’t support $200m buyback program if they sniffed a hint of something fishy here, all the well known financial establishments maintained a buy rating since 2018 with PT between 2450-4800p. NMC healthcare won’t be one of the most prestigious health businesses in the UAE if they weren’t good in what they do and the ministry of health in Emirates won’t allow them to be the largest healthcare provider in the country and approved by numerous international health insurance companies worldwide.

NMC won’t hire the head of the FBI to run independent investigation if they were hiding something ...

MW previously attacked BUR same way to short the company and managed to drop the sp before it shown recovery .. same here, over 70% drop since the report came out due to short attack and it should show some recovery next week .

“@Mafioso:The 3rd option I failed to mention is what FT have alluded to Shetty is looking for for new investors to replace the 2 existing Arab partners”

In case some people in here havnt read the FT article :

NMC Health founder eyes a return to embattled group, 77-year-old entrepreneur BR Shetty ‘looking to buy out Emirati partners’

February 5, 2020 6:14 pm
by Simeon Kerr in Dubai

The founder of NMC Health is looking to buy out his Emirati partners and return to an “active leadership position” at the embattled hospital group, according to people briefed on his plans.

The 77-year-old Indian-born entrepreneur BR Shetty is conducting an operational review of NMC ahead of formal talks to explore various options with shareholders and regulators, these people said.

Shares in NMC, which owns and operates hospitals in the Middle East, have fallen more than 60 per cent since short-seller Muddy Waters last year questioned its asset values, cash balance and debt levels. The claims have been rejected by NMC, which has appointed former FBI director Louis Freeh to carry out an investigation into the allegations

Mr Shetty stepped down as NMC’s chief executive in 2017 but remains one of the largest shareholders with a 15 per cent stake. On top of the NMC share price decline, he has also been hit by a sharp decline in the value of his other main business, financial services group Finablr, which has fallen more than 60 per cent in the past few weeks.

One person briefed on Mr Shetty’s strategy said the businessman had made the Abu Dhabi government aware of a potential plan that may include bringing in new investors to buy the shares owned by Emirati investors Saeed al-Qebaisi and his relative Khalifa al-Muhairi, who control a stake of about 24 per cent in NMC.

Last month the pair sold £375m of their shares to repay debt owed to Deutsche Bank and Credit Suisse to meet margin calls as the stock price collapsed, reducing their stake in the company

“BRS wants to take an active leadership position,” said one person close to Mr Shetty. “We will support what others decide and try to reach a consensus.”

A spokesman for Mr Muhairi, who is executive chairman at NMC, said: “Khalifa remains committed to the financial success of NMC as a business. Given the ongoing investigation he is unable to comment at this time.”

Private equity firms, including Apollo, have previously considered taking a stake in NMC, according to two people familiar with the situation. Apollo declined to comment.

Bankers are sceptical about Mr Shetty’s ability to fund any transaction, saying he would need financing to raise his stake in the FTSE 100 company he founded in 1975

But the people familiar with Mr Shetty’s plans point out that he has retained his stake in the healthcare group throughout its recent crisis without having to sell any NMC shares.

2\ 3rd of Feb 2020

KGI Had Constructive Talk with NMC Management Representatives

Krupa Global Investments (KGI) spoke with NMC management representatives and agreed on meeting with CEO Prasanth Manghat in the upcoming weeks. Management representatives of NMC explained all questions that KGI had regarding Muddy Waters report and future growth and prospect for company.

KGI had positive conference call with NMC management representatives few days ago. KGI requested further explanation on issues regarding cash reserves, debt and purchases of certain properties in UAE mentioned in Muddy Waters report. NMC re-iterated previous statements that these allegations are not true and independent review is in process with supervision from Louis Freeh, former federal judge and FBI director.

KGI has previously suggested to establish independent committee to solve this issue in its press release of December 27, 2019 and therefore we appreciate the appointment of Mr Louis Freeh to review Muddy Waters allegations.

NMC assured us that review is clearly independent and members of committee only ask questions and request documents from middle and top management representatives and do not share any other conversations or relationships. Results of independent review should be known in upcoming weeks prior to the announcement of FY19 results.

We agreed that KGI’s chairman Pavol Krupa and partners will meet NMC’s CEO Prasanth Manghat to discuss these issues in more depth in the upcoming weeks. NMC will show us their new facilities in Abu Dhabi.

NMC Health is well positioned to gain market share in Gulf region mainly in Saudi Arabia and increase their penetration in UAE and UK. In our opinion, further growth will be led by huge capacities in their hospitals and profitable distribution channels, when this crisis fades away. Several analysts are considering NMC shares as deeply undervalued (JP Morgan with target price 3,360 GBP, Barclays with target price 4,275GBP). KGI agrees with them.

Krupa Global Investments holds 1m shares of NMC Health.

Source PDF : https://bit.ly/371xjt6

Two more interesting articles from Krupa Global:

1 \ 15th of Jan 2020

KGI Announces Position in NMC Health, Sees NMC Shares Deeply Undervalued

Krupa Global Investments (KGI) bought 1,000,000 shares of NMC Health (NMC), UAE-based hospital and health care provider and FTSE 100 company which has been under fire from short seller hedge fund Muddy Waters (MW).
KGI has been monitoring situation around NMC for quite some time since Muddy Waters published report which took down more than 70% of NMC value. KGI suggests that ‘facts’ in MW report might be relevant but not significant enough that NMC should go bankrupt or go out of the business based on this information. KGI has analysed report from Muddy Waters and NMC valuation closely and we believe that shares of NMC are deeply undervalued at these levels even in situation that everything mentioned in MW report is true which is highly unlikely.

In our opinion, shares would be fairly valued around 2000 GBP per share relative to peers. NMC is dominant health care provider in UAE and their expansion plans into other Middle East countries will enhance their growth and bring valuation much higher when MW report crisis fades away.

Another reason for undervalued NMC shares is sale of significant stake by biggest shareholders. KGI claims event that happened in recent days when two biggest shareholders sold significant stake in NMC for price of 1200 GBP per share was intentional and not due to the reasons they mentioned. Shares of NMC were significantly higher just couple of weeks before the announced sale with trading volume exceeding average. These shareholders could sell their stakes at higher price in market, in our opinion, if the main motivation would be to get cash a pay down their debt in other ventures and businesses. KGI thinks that this kind of action from biggest shareholders might be intentional to secure lower price for certain time and open door for other potential investors. Process of sale takes several weeks and months to execute via advisors and banks, it’s not one day process which leave us suspicious as well.

We have seen this happening in August 2019 when MW started their campaign. Shares of NMC plummeted on the news, but few days later several Chinese investors including Fosun Group were interested in buying huge stake in company and shares rose back to the levels before MW report. KGI suggests that similar situation can occur now.

Source - PDF file : https://bit.ly/2UFGFIB

"@CoolKid: Btw, results announcement due on 4th march."

17 Jan RNS - Independent review investigators:

As previously announced, the Committee is undertaking an independent review of all allegations, focusing initially on confirmation of the Group's cash balances as at 15 December 2019.

The Committee intends to publish findings of the review into all primary allegations made, particularly all those of a financial nature >>>in advance of the release of the Company's 2019 financial results.<<<<

I'd like to believe that we'll get [Transactions in Own Shares] RNS from the company on Monday morning , so far they bought 2 lots 100K shares each at 1262.57 & 1745.32 so bagging another chunky lot at 50% discount to what they paid last month would be a smart move from the company.

"Following the General Meeting held on 5 December 2019, NMC Health plc ("NMC" or the "Company") announces that it has entered into an arrangement with HSBC Bank plc ("HSBC") in relation to the purchase by HSBC, acting as principal, of ordinary shares in the Company's share capital (the "Shares") for an aggregate consideration of no greater than US$200m (the "Buyback Programme"). The Buyback Programme will be subject to certain pre-set parameters and any purchase of Shares will take place during the period commencing on 18 December 2019 and ending no later than the earlier of the conclusion of the annual general meeting of the Company in 2020 and 30 June 2020, including during any closed period of the Company which may fall within that period. The maximum number of Shares that will be repurchased pursuant to the Buyback Programme is 20,890,386.



Any purchase of Shares pursuant to the Buyback Programme will be carried out on the London Stock Exchange and executed in accordance with Chapter 12 of the Listing Rules of the Financial Conduct Authority and the Company's general authority to make market purchases of Shares.

The Company will announce any market repurchase of Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred.

The purpose of the Buyback Programme is to reduce the share capital of the Company and all Shares purchased will be cancelled."

BTFATH1, I quoted "a technical bounce" so I see the current sp as a good trading opportunity for 10-20% profit from these levels :)

As someone just said on twitter, intu is extremely oversold at the moment & a technical bounce is due - Relative Strength Index (RSI) is 7% "

**RSI is considered overbought when above 70 and oversold when below 30.

Someone seems to be busy buying on NEX as well ?!

06/02/2020 15:18 60,000 3.156
06/02/2020 14:49 31,430 3.144
06/02/2020 14:29 200,000 3
06/02/2020 14:29 350,000 3

Danker, our assets worth multiple times the current Mcap so the chances of recovery from this ridiculous sp level is extremely high in my opinion. Since the company was listed many years ago, the sp dropped to 3p in one occasion (last summer) and it recovered within couple of weeks (similar to the current time frame).

We are expecting to receive $7m from the first lifting anytime very soon and a similar payment anytime before mid March so I dont see a problem in making March & May's payments.

As for July 2020 financial obligation:

[Failure to make this payment on time may result in Lekoil and Optimum jointly seeking, and agreeing on, a willing buyer to whom the transfer of Lekoil's 17.14% participating interest in OPL 310, as well as all the financial obligations related to OPL 310, can be made.]

So for new holders I see holding at the current share price is a very low risk trade/investment...... a win-win maybe?

Danker, I believe Baron is out and any big sells over the past couple of days were from bored traders not IIs. AIM is flooded with traders lately (not investors) so if no movement or recovery in the share price of X Company for few days then they will sell and jump on another share with higher trading volume. Lek's sp has been moving within +-10% for two weeks so some traders got bored and cashed out but I can assure you that they will come back once the company releases any positive update or more volumes comes our way for whatever reason.

Personally I wont sell and will wait patiently because we I strongly believe that we are not far away from imminent updates& as I mentioned before I see higher lows on the BID over the past couple of days which means more people have been topping up or holding new positions here.

they were buys:

09:58:48
3.00
500,000
£15.00k

13:31:23
3.00
500,000
£15.00k

Dave, Overdue rnsS ;)

I received this email from Lekoil earlier today in regards to the appointment of the new CFO:

“ With regards to the appointment of a CFO, we can confirm that a candidate has been identified and the appointment process is being finalized. An announcement will be made once this appointment (which includes an appointment to the Board) is complete.

Unfortunately, at this time, I can’t guide on the timing of this process.

Thank you

Investor Relations
LEKOIL”

No chunky sells since yesterday and higher lows on the BID as well : )

Danker, close period is not limited to annual report.

"close period

(i) About annual results.............

(ii) any other period when the AIM company is in possession of unpublished price sensitive information"

........From past experience I know that (ii) includes acquisition, takeover and sale or partial sale of assets :)

"No director buys not even new NED, CFO at this astonishing price , and we may know why as it would be classed as price sensitive information."

Very likely because BOD are in a close period.

You forgot to add the following to your list :

1- Paying "The sum of US$2.0 million to be paid on or before 20 March 2020." - Very doable, 1st lift for $7m was last week and another $7m in the piggy before the end of March.

2-The site survey on OPL 310 commenced 3 weeks ago and its expected to be completed before the expiration of the approval received from DPR which occurs on 24 March 2020 ; )

Indeed exciting times ahead !

@V111JAS : The Company putting his name prematurely on the web site , simply an error ."

He updated his LinkedIn account to show his recent position as the "Chief Financial Officer at LEKOIL Limited" several days before the company put his name on the website.......

https://ng.linkedin.com/in/edward-during-0a2354b4

"Emailed them on the 28th Jan re RNS for CFO... no response!"

I did the same earlier today but no reply yet, Edward During is mentioned on Lekoil's webiste as the new Chief Financial Officer so no doubt about his new position but there must be a very good reason for Lekoil not to RNS the news. Baron seems to be out now so I am expecting updates from the company anytime soon.

Well, you can drop them an email and ask the question :)

investorrelations@lekoil.com