Bavaguthu Raghuram Shetty, the founder of NMC Health and Chairman of UAE Exchangeby Bloomberg
NMC Health founder Bavaguthu Raghuram Shetty is considering selling his Abu Dhabi-based pharmaceuticals business, Neopharma, after drawing interest from potential investors.
BR Shetty, who resigned as Chairman of the beleaguering hospital operator in February 2020, has been approached by parties including regional investors and family offices.
The Indian entrepreneur, who left over concerns that he may have misreported the size of his stake in NMC Health, may sell all or part of Neopharma and use the proceeds to repay loans.
BR Shetty is working with Houlihan Lokey to explore strategic options for BRS Ventures after NMC Health became entangled in allegations of fraud.
The NMC Health founder had been considering selling shares in Neopharma before a December 2019 report by short-seller Carson Block alleged that the hospital operator had overpaid for assets, inflated cash balances and understated debt.
Since then, NMC Health has lost two-thirds of its value and five of 11 board members have either been fired or resigned amid a series of financial improprieties.
Earlier this week, NMC Health asked lenders for a reprieve on its debt and Moody’s slashed its rating by five levels, saying its financial statements cannot be relied on.