Suspended NMC Health vice chair resigns amid legal review
NMC Health announced today that vice chair Khalifa Butti Omeir Bin Yousef has resigned with immediate effect amid a legal review.
Earlier this week, the Financial Conduct Authority (FCA) confirmed it had launched a probe into the embattled hospital operator after the company announced it was seeking clarification from major shareholders over the size of their stakes in NMC.
The private hospital operator NMC suspended Omeir Bin Yousef on Monday, asking him and joint non-executive chair Bavagathu Raghuram Shetty to “absent themselves from further board discussions.”
It follows a report by short-selling firm Muddy Waters Capital which alleged that NMC manipulated its balance sheet and had inflated the price of assets it purchased.
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Muddy Waters cast doubt over the £107.3m investment into the redevelopment of NMC Royal Women’s Hospital. Red flags included the cost being £7,700 per metre squared, exceeding Muddy Waters’ expectation of £3,500 to £4,000.
NMC has disputed these claims, previously calling them “unfounded, baseless and misleading”.
Shares were down 2.4 per cent before recovering to minus 1.5 per cent at 805.8p.
Yesterday shares fell as much as 11 per cent after NMC was hit with a double rating downgrade from Societe Generale.
Analysts at the French bank slashed the hospital operator’s price target by 85 per cent, saying that confidence in the company is “broken”.
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