By Bernd Debusmann Jr
In December, NMC shares plummeted 32 percent following a report from short-seller Carson Block which criticised the company's accounts
UAE-based NMC Health has announced that an independent review will focus on the group’s cash balance as of December 15, 2019, the company has announced.
In December, NMC shares plummeted 32 percent following a report from short-seller Carson Block which criticised the company’s accounts.
NMC has characterised the report – which saw its fortunes drop by approximately $820 million in the week after the report was published – as “principally unfounded.”
In a statement on Monday, NMC said that it expects the review to be published “as soon as possible”.
“The remainder of the review is expected to be completed, and its findings published, well in advance of the finalisation and announcement of the company’s 2019 full year results,” the statement said.
“In the meantime, we remain focused on our business, strategy and wider stakeholders and in continuing to generate long-term returns and value for our shareholders,” it added.
In another statement following the Muddy Waters report, NMC claimed that it was conducted “without accurate data” to support its conclusion, which stands in contrast to that of a majority of analysts.
“The Muddy Waters report opens up the debate on an often repeated question – what’s the socio/economic impact of a short in the business economy?” the NMC statement said. “Someone creates a business, creates employment, deploys a physical success story and then these shorters only seek to destroy the credibility of the company, annihilating the shareholders’ value for their gains.”For all the latest health tips & news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.