A fund owned by Abu Dhabi state investor Mubadala has taken a 3.4 percent stake in troubled London-listed payments firm Finablr.
Finablr confimred the investment by MIC Capital Partners – owned and managed by Mubadala Capital, part of Mubadala Investment Co – a statement on Tuesday morning.
“They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators,” a spokesman told Reuters.
Finablr Plc, the owner of currency-exchange businesses including Travelex Holdings Ltd, warned on Monday it may not be able to continue operating. Its chief executive officer Promoth Manghat has stepped down.
The company, caught up in the widening scandal at a related business, hospital operator NMC Health Plc, said it’s investigating about $100 million in checks dating from before its May initial public offering that were used to benefit third parties.
Because of this, Finablr is unable to accurately assess its financial position, the UK-listed company said in its statement on Monday.
‘Potential insolvency’
On Tuesday, in a further statement to the London Stock Exchange, it said it has “engaged an accounting firm to undertake rapid contingency planning for a potential insolvency”.
Finablr’s stock has plunged about 94 percent this year because of its ties to NMC. Both companies were founded by Bavaguthu Raghuram Shetty.
The hospital company said last week that a probe of financial irregularities revealed potentially fraudulent activity. NMC previously said it had uncovered $2.7 billion of debt hidden from its board that was used for unknown purposes.
Finablr said its board had been informed that there aren’t any undisclosed related-party transactions or unrecorded off-balance-sheet financing arrangements, though it was planning to commission an independent investigation into the company’s financial arrangements.
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