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26 January 2020
INVESTMENT

Emirates NBD sells stake in NMC after Muddy Waters attack

NMC Health hired former FBI Director Louis Freeh to investigate allegations by short-seller Muddy Waters Capital of financial wrongdoing by the hospital operator

NMC Health appointed a committee of independent board members to look into the matter last month/Bloomberg

by Kudakwashe Muzoriwa

Dubai's Emirates NBD sold its 1.04 per cent stake in NMC Health for GBP 27.05 million ($35.55 million), weeks after the Abu Dhabi-based healthcare firm was hit by a short-selling attack by US firm Muddy Waters.

The bank’s sale of 2.16 million shares in NMC at GBP 12.50 per share, also comes days after two major shareholders launched a discounted share sale in the London-listed group.

Reuters reported that NMC's Vice-Chairman Khaleefa Al Muhairi and its second-largest shareholder Saeed al Qebaisi together sold NMC shares worth GBP 375 million on 8 January 2020.

The bank said that it sold the company's shares after the repayment of a related loan entered into by another entity, Infinite Investment, as the borrower and Emirates NBD as the lender.

NMC launched an independent review of its finances after short-seller Muddy Waters questioned the value of its assets and cash balance while announcing a short position.


RELATED STORIES: Emirates NBD NMC Health Muddy Waters

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