Thursday 10 December 2020

Exclusive-NMC Health administrators sound out investors for flagship UAE hospitals - sources | Reuters

Exclusive-NMC Health administrators sound out investors for flagship UAE hospitals - sources | Reuters

Administrators of troubled hospital operator NMC Health are sounding out potential buyer interest for its flagship business in the United Arab Emirates (UAE), three sources familiar with the matter said.

The potential sale of its biggest assets which would also include Oman, could generate around $1 billion, one of the sources said. It follows administrators Alvarez & Marsal’s launch in August of a process to sell NMC’s international business including its international fertility units.

NMC, which was founded by Indian businessman BR Shetty in the mid-1970s, became the largest private healthcare provider in the UAE but has run into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.

NMC went into administration in April following months of turmoil over its finances and the discovery that it had $6.6 billion in debt, well above earlier estimates.

The administrators will present two options to NMC’s creditors by February: either an outright sale of the assets or a business reorganisation, said the sources. Lenders will have to vote by April on which of the two options they opt for, added one of them.

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