Friday 20 December 2019

Billionaire Clan Under Fire From Muddy Waters Loses $700 Million - Bloomberg

Billionaire Clan Under Fire From Muddy Waters Loses $700 Million - Bloomberg:

It’s been a long week for the Shetty family.

The billionaire clan behind hospital operator NMC Health Plc and financial services firm Finablr Plc has seen its fortune drop by about $700 million since short-seller Carson Block issued a report Tuesday criticizing the medical company’s accounts and disclosing a short position.

NMC shares tumbled 32% on Tuesday in response to the report -- which the company called “principally unfounded” -- and fell an additional 11% Thursday after a buy-back program failed to convince investors. Shares of Finablr have dropped 18% since Block’s Muddy Waters Capital launched its attack on NMC, prompting the firm to confirm it’s on track to hit expected financial results.

Bavaguthu Raghuram Shetty, 77, founded NMC in 1975 after moving to Abu Dhabi from his native India. It’s now the United Arab Emirates’ biggest private health-care provider. He created Finablr in 2018 to consolidate his finance brands and listed the company on the London Stock Exchange this year. The family’s stakes in Finablr are worth about $1 billion.

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