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22 February 2020

B.R. Shetty hires Houlihan to weigh debt, M&A options for NMC Health parent company

Shares in the company have plunged since Muddy Waters Capital released a report criticising its accounts in December 2019 and the firm is now the focus of takeover speculation

The borrowing of the holding company includes a loan of about $1 billion that was used to acquire Travelex Holdings/Bloomberg

by Bloomberg

NMC Health founder Bavaguthu Raghuram Shetty has hired Houlihan Lokey to explore strategic options for his holding company, including a potential debt restructuring or the sale of some assets.

The investment bank is working with BRS Ventures Investment to revamp debt and seek potential investment partners or sell assets from the portfolio, which holds 30 companies including hospital operator NMC and financial services firm Finablr.

The borrowing of the holding company includes a loan of about $1 billion that was used to acquire Travelex Holdings.

Shetty resigned from the NMC Health board this week amid investor concern that he faced a margin call and misrepresented his stake in the hospital operator. Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request.

NMC operates the largest medical network in the UAE and in 2012 became the first Abu Dhabi company to list on the London Stock Exchanges.

Carson Block’s Muddy Waters alleged that NMC’s financial statements hint at potential over payment for assets, inflated cash balances and understated debt. NMC has called those claims unfounded.

BRS Ventures does not report consolidated financials, preventing a complete analysis of his net worth. Shetty’s other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.

RELATED STORIES: Bavaguthu Raghuram Shetty BRS Ventures Finablr London Stock Exchanges NMC Health Muddy Waters





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