|Bid||876.60 x 0|
|Ask||876.40 x 0|
|Day's range||837.43 - 902.80|
|52-week range||677.01 - 3,059.00|
|Beta (5Y monthly)||0.37|
|PE ratio (TTM)||6.82|
|Earnings date||05 Mar 2020 - 09 Mar 2020|
|Forward dividend & yield||0.18 (2.12%)|
|Ex-dividend date||13 Jun 2019|
|1y target est||54.44|
BRS International - said Shetty had pledged the shares to Goldman Sachs as as part of a funded equity collar transaction, a complex structure used to help to build a stake in a company. Shetty resigned as NMC's co-chairman last week, creating further uncertainty for the London-listed UAE company, which has seen its share price collapse in the past few weeks on doubts about the shareholdings of its major investors.
(Bloomberg) -- The Jefferies International Ltd. analyst who was ahead of the pack in predicting a slump in NMC Health Plc’s shares now says the stock has a lot further to fall.James Vane-Tempest cut his price target on the hospital operator to 500 pence, or 42% below Friday’s close, from 1,300 pence previously. The target is the lowest among analysts tracked by Bloomberg.The multiple of earnings that investors are willing to pay for NMC has fallen given the concerns raised by short seller Muddy Waters Capital LLC, Vane-Tempest wrote in a report Monday. The analyst, who has rated the stock underperform since November 2018, said his latest review shows that growth at the Abu Dhabi-based company’s clinics is slower than it appears, and that its cash position is tightening.The analysis adds to the turmoil around NMC since Muddy Waters alleged in December the company manipulated its balance sheet and inflated the prices of assets it purchased. NMC has said the allegations are false, and that a committee of independent directors plans to publish findings of a review it commissioned before annual results are announced. In recent years, the company has published earnings in early to mid March.NMC fell 3.4% to 826 pence at 11:13 a.m. in London. The stock has lost 68% since the Muddy Waters report on Dec. 17 and is the worst performer this year in the U.K.’s benchmark FTSE 100 Index. It jumped on Feb. 10 after the company said it received preliminary takeover approaches.A spokesperson for NMC wasn’t immediately available for comment on the Jefferies report.The review of the Muddy Waters report the company commissioned from former FBI Director Louis Freeh could set NMC on a path to recovery, the Jefferies analyst wrote.“If any of MW’s accounting allegations are proved true, an analysis of precedent situations suggests that it would not be improbable to see a restructuring of the current board, paving the way for further corporate change,” Vane-Tempest wrote in his report, titled “Not Much Cash?”Before the Muddy Waters report was published, Jefferies was the sole analyst with a sell rating or equivalent on the stock. NMC now has four buys, no holds and two sell ratings, with several analysts recently suspending or restricting their coverage on the stock amid possible offers for the company.To contact the reporter on this story: Lisa Pham in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Phil SerafinoFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- NMC Health Plc founder Bavaguthu Raghuram Shetty hired Houlihan Lokey Inc. to explore strategic options for his holding company, including a potential debt restructuring or the sale of some assets, according to people familiar with the matter.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 Plc, according to the people.The borrowing of the holding company includes a loan of about $1 billion that was used to acquire Travelex Holdings Ltd., said the people, who asked not to be identified as the matter is private. Representatives for BRS Ventures and Houlihan Lokey declined to comment.Shetty this week resigned from the board of NMC amid investor concern 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 United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. Shares in the company have plunged since Muddy Waters Capital LLC released a report criticizing its accounts in December and the firm is now the focus of takeover speculation.Carson Block’s Muddy Waters has 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, based in the United Arab Emirates, doesn’t 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.(Adds options including asset sales in 2nd paragraph)To contact the reporters on this story: Dinesh Nair in London at firstname.lastname@example.org;Archana Narayanan in Dubai at email@example.com;Nicolas Parasie in Dubai at firstname.lastname@example.orgTo contact the editors responsible for this story: Stefania Bianchi at email@example.com, Michael Gunn, Adveith NairFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The NMC share price gained nearly 10% Thursday, but I think buying now could be courting disaster.The post Why I'd dump the NMC Health share price and buy this health stock instead appeared first on The Motley Fool UK.
(Bloomberg) -- Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.Then, a week later, Carson Block came along.Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million based on market closing prices Tuesday, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged more than 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, which issued a statement Wednesday calling for the Shetty family to clarify their holdings in the company by the end of the month.NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His 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.Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.Block said he didn’t anticipate NMC’s shareholding drama.“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”(Updates with Finablr statement in 10th paragraph.)\--With assistance from Filipe Pacheco, Nicolas Parasie and Pei Yi Mak.To contact the reporters on this story: Ben Stupples in London at firstname.lastname@example.org;Lisa Pham in London at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Steven Crabill, Peter EichenbaumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shetty on Monday resigned as co-chairman, creating further uncertainty for the UAE healthcare company, which has seen its shares collapse in the past few weeks on doubts about the shareholdings of its major investors. The company said it was not able to independently verify the information received from Shetty or that contained in his Persons Discharging Managerial Responsibilities (PDMR) notification. Shetty's resignation came a week after UK regulators said they were looking into NMC following a disclosure that he had misstated the size of his NMC stake.
Shetty's decision to step down follows a string of resignations months after the company was thrown into turmoil following questions raised over the group's finances. A bruising short-selling attack by Muddy Waters launched two months ago has seen NMC's market value fall to 1.6 billion pounds ($2.1 billion), down from its peak value of about 8.4 billion pounds in August 2018. Here are ten facts about Indian billionaire Shetty.
(Bloomberg) -- NMC Health Plc, a hospital operator targeted by short seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.The board asked for Co-Chairman Shetty’s resignation, which takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer in the FTSE 100 Index this year, fell Monday morning and then rebounded, gaining as much as 2.3%.“The share ownership and pledge debacle is a symptom of systemic rot and corruption at NMC,” Carson Block, founder of Muddy Waters, said in a tweet.NMC lost almost half its value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of the principal shareholders, NMC said, adding that they had no knowledge of the share transfers.Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.Almost 10% of NMC’s freely traded shares are shorted, according to data from IHS Markit Ltd. In mid-December about a third of them were.Last week Swiss-based GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. In the first announcement released to the market on Feb. 10, GK Investment, a company also based in Lugano, Switzerland and founded by Tunisian businessman Kamel Ghribi, was said to be the possible bidder. GKSD later clarified GK Investment had contacted NMC on its behalf and was acting as an adviser.When Bloomberg News contacted GK Investment Monday, a woman who picked up the phone said she’d been told to make no comment. The websites of both GK Investment and Ghribi said they were under maintenance.N.M. Rothschild & Sons Ltd. and Goldman Sachs are advising GKSD. Under U.K. takeover rules, it has until March 9 to make a bid. NMC also said it got an approach from Kohlberg Kravis Roberts & Co. last week, but the private equity firm said Tuesday it had no plans to make an offer.NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, said the person familiar with the situation, who asked not to be identified because the investigation is ongoing.NMC said Mark Tompkins will continue as the company’s sole chairman.(Updates with Muddy Waters comment in third paragraph)\--With assistance from Filipe Pacheco.To contact the reporters on this story: Suzi Ring in London at email@example.com;Lisa Pham in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Thomas Mulier, Andrew NoëlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Indian billionaire Shetty's resignation comes a week after UK regulators said they were looking into NMC following a disclosure that he had misstated the size of his NMC stake. NMC's London-listed shares fell as much as 9% on Monday after the group also said Chief Investment Officer Hani Buttikhi and another director had resigned. NMC, which joined the London Stock Exchange in 2012 and was promoted to the blue chip FTSE 100 index in 2017, operates clinics and hospitals, specialised maternity and fertility clinics, and long-term care homes hospitals across 19 countries.