NMC hired former FBI Director Louis Freeh to conduct an independent review/Bloombergby Bloomberg
UAE-based NMC Health said that its vice chairman has resigned after he was excluded from board discussions for possibly misrepresenting his holdings in the company.
In a statement, said that vice chairman Khalifa Butti Omeir Bin Yousef is stepping down from the board with immediate effect. NMC removed Butti and Chairman Bavaguthu Raghuram Shetty from board meetings after UK regulators said that they were looking into the company after news that the founder of the hospital operator had inaccurately disclosed the size of his stake in the business.
The company this week said it had received buyout interest from Italian-backed GKSD Investment Holding and US-based KKR & Co. GKSD subsequently confirmed it could bid for the hospital operator but KKR said that it would not.
Additionally, Kohlberg Kravis Roberts & Co. announced it does not plan an offer after NMC said the private-equity firm made an approach.
NMC also said that there had been a series of complex shareholder dealings involving Shetty, Bin Yousef and another top investor, Saeed Butti Al Qebaisi.
The hospital operator said that Bin Yousef and Al Qebaisi had notified them that some of their shares had been pledged as security for loans by Shetty in an arrangement ‘they were not party’ to.
NMC stated that the company continues to seek clarity from Dr. B.R. Shetty, Khalifa Bin Butti and HE Saeed Bin Butti in relation to the above arrangements and their respective shareholdings. NMC said that its board plans to vote whether Shetty and Butti could remain as company directors.
NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review.