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NMC Health requests delisting of shares
27th Apr 2020 09:50
(Sharecast News) - NMC Health has asked for its shares to be removed from trading on London Stock Exchange after the scandal-ridden company was suspended two months ago.
The company's shares were suspended in late February as chaos mounted following the eruption of an accounting scandal. In March it said an independent review had found evidence of suspected fraud after it revealed billions of dollars of previously unreported debt.
The Gulf hospital operator was placed into administration on 9 April after one of its biggest creditors, Abu Dhabi Commercial Bank, took legal action. The company's near-collapse after eight years on the stock exchange amid is an embarrassment for the UK Listing Authority after it rose to join the FTSE 100 in 2017. NMC was ejected from the index of leading shares last week.
NMC Health, founded by Indian billionaire BR Shetty, has been embroiled in an accounting scandal after a report by activist investor Muddy Waters in 2019 alleged it inflated cash balances, overpaid for assets and understated its debt. In April the company said its debt was more than three times the previously declared figure of $2.1bn.
"Continued listing of the shares in NMC Health incurs significant cost and adds complexity in a situation where decisions need to be made quickly in partnership with the group's stakeholders," NMC said. "Against this backdrop, the administrators have concluded that delisting NMC Health's shares is appropriate."
The company's shares were suspended in late February as chaos mounted following the eruption of an accounting scandal. In March it said an independent review had found evidence of suspected fraud after it revealed billions of dollars of previously unreported debt.
The Gulf hospital operator was placed into administration on 9 April after one of its biggest creditors, Abu Dhabi Commercial Bank, took legal action. The company's near-collapse after eight years on the stock exchange amid is an embarrassment for the UK Listing Authority after it rose to join the FTSE 100 in 2017. NMC was ejected from the index of leading shares last week.
NMC Health, founded by Indian billionaire BR Shetty, has been embroiled in an accounting scandal after a report by activist investor Muddy Waters in 2019 alleged it inflated cash balances, overpaid for assets and understated its debt. In April the company said its debt was more than three times the previously declared figure of $2.1bn.
"Continued listing of the shares in NMC Health incurs significant cost and adds complexity in a situation where decisions need to be made quickly in partnership with the group's stakeholders," NMC said. "Against this backdrop, the administrators have concluded that delisting NMC Health's shares is appropriate."