Two major investors in NMC Health have launched a discounted share sale worth $493 million (£375 million), sending its stock down 19 percent weeks after a short-selling attack by US firm Muddy Waters.
The deal, led by NMC’s second- and third-largest shareholders Saeed Al-Qebaisi and Khaleefa Al-Muhairi, was priced at 1,200 pence per share, a bookrunner for the deal said on Wednesday, adding that the sale was oversubscribed.
The price is at a discount of about 20 percent to the company’s last close of 1,494.5 pence on the London Stock Exchange.
The statement also said Al-Qebaisi and Al-Muhairi have sold shares worth about $72 million in payments firm Finablr, which is co-chaired by Bavaguthu Raghuram Shetty, also the founder and co-chairman of NMC.
NMC shares were down 15.8 percent at 1,258.5 pence and Finablr was 19 percent lower at 125.1 pence as of 0856 GMT.
The investors sold the shares to repay some of their debt and the debt of some corporate entities owned by them, the bookrunner said, adding that the move will also remove the pledge on NMC shares under a borrowing agreement with two banks.
Following the transactions, Al-Muhairi will retain a 12.5 percent stake in NMC, while Al-Qebaisi will keep a 4.7 percent holding, according to the statement.
Prior to the sale, Al-Qebaisi held 17.43 percent of NMC shares while Al-Muhairi held 14.69 percent, according to Refinitiv Eikon data.
NMC, the United Arab Emirates’ largest private health care provider, has launched an independent review of its finances after short-seller Muddy Waters questioned the value of its assets and cash balance while announcing its short position.
Earlier this week NMC said the review will initially assess its cash balances as of Dec. 15.
Short selling involves borrowing an asset and selling it with the aim of buying it back at a cheaper price and making a profit.
Muddy Waters, founded by American Carson Block, is known in financial markets for declaring short equity positions on the basis of its in-house research.
Including session losses, shares in NMC, which has denied the allegations, have lost about half of their value since the report was launched.
UAE’s NMC Health tumbles after major investors sell shares worth $493 million
https://arab.news/zzyv3
UAE’s NMC Health tumbles after major investors sell shares worth $493 million
- The deal, led by NMC’s second- and third-largest shareholders Saeed Al-Qebaisi and Khaleefa Al-Muhairi, was priced at 1,200 pence per share
- Investors sold the shares to repay some of their debt and the debt of some corporate entities owned by them
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
