Top NMC shareholder Muhairi quits board amid turmoil

Abu Dhabi-based healthcare group has faced turbulent time since report questioning finances

Khalifa al-Muhairi, one of NMC’s controlling shareholders, has resigned from the board of the healthcare group after a turbulent few months in which the company’s finances and ownership structure have been questioned.

The largest private healthcare provider in the United Arab Emirates said Mr Muhairi, the executive vice-chairman, stepped down on Friday. Along with India-born founder BR Shetty, he had been asked to step back from board duties earlier this week when it was disclosed that their shareholdings had been inaccurately reported.

That prompted UK regulators to start an investigation into the size of the shareholdings of Messrs Shetty and Muhairi, as well as the other Emirati controlling partner, Saeed al-Qebaisi.

Abu Dhabi-based NMC has been in turmoil since short-seller Muddy Waters questioned the group’s finances, raising doubts about its debt and asset valuations. NMC, which denied the charges, has commissioned former FBI director Louis Freeh to investigate the allegations. Its share price has since declined almost 70 per cent.

Before the Muddy Waters report, Mr Shetty owned about 15 per cent, alongside Mr Qebaisi with 17.4 per cent and Mr Muhairi with 15 per cent. Both Emiratis have since sold down their stakes at a discount to cover debts linked to their stock. Mr Shetty, who has launched a legal review into the confusion over his shareholdings, could see his ownership decline to around 5 per cent.

US-educated Mr Muhairi had over the past few years taken an increasingly direct role in the operations of the FTSE 100 healthcare group after Mr Shetty stepped down as chief executive in 2017. His resignation comes amid interest from private equity groups as the value of the company has declined precipitously down to around £1.7bn.

Mr Muhairi declined to comment.

GKSD Investment, backed by an Italian hospitals group, has confirmed it is in the preliminary stages of a bid for NMC Healthcare. Rasmala has also expressed an interest, people close to the Dubai-based investment firm said.

Many industry executives say the operational fundamentals of NMC remain solid, creating an opportunity to invest in the hospital and clinic operator at a cheap price.

But others are sceptical given the mystery surrounding its key shareholdings, concerns over further revelations about its finances and the potential for legal action.