Font Size
Share this article


Print Friendly Version
19 December 2019
HALAL ECONOMY

Abu Dhabi-based NMC Health calls short seller attack baseless

NMC Health shares lost about a third of their value after Muddy Waters said that the hospital operator’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt.

Abu Dhabi Skyline/Bloomberg


NMC Health said that claims made by Carson Block’s Muddy Waters Capital appear principally unfounded, after a report by the short seller sent shares tumbling the most on record earlier this, reported Bloomberg.

NMC Health stated that it will review the assertions, insinuations and accusations made in the report, which appear principally unfounded, baseless as well as misleading, containing many errors of fact, and will respond in detail in due course.

In a separate statement, NMC Health also reaffirmed 2019 and 2020 forecasts provided in October 2019, adding that it will start a share buyback programme of as much as $200 million this week.

The company responded saying that it has a track record of significant, open and increasingly detailed disclosure to the market, as monitored and reviewed by its entirely independent disclosure committee.

Muddy Waters did not disclose the size of its short position in NMC Health in the report. Short sellers seek to benefit from a decline in a company’s share price.

 


RELATED STORIES: Muddy Waters Capital Short sellers NMC Health


RECOMMENDED NEWS



BRANDS MAGAZINES LATEST EDITION

OUR BRANDS



CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.