NMC Health rallies as investor finds PE firm interested in strategic stake
By Michele Maatouk
Date: Wednesday 12 Feb 2020
(Sharecast News) - Shares of NMC Health surged on Wednesday after shareholder Krupa Global Investments (KGI) said a healthcare group in Central and Eastern Europe was interested in taking a strategic stake in the UAE private healthcare provider.
Czech activist investor KGI said it had told NMC the name of the potential investor but chose not to disclose it to the public for now as talks are in progress. It also said that it was interested in providing financing to co-founder B.R. Shetty.
On Tuesday, the shares fell after US private equity firm KKR said it had not made a bid for NMC.
KGI announced last month that it had taken a stake in NMC, arguing that the shares were "deeply undervalued" after sinking on the back of a damning report from US research firm and short-seller Muddy Waters in December.
KGI said in a statement on Wednesday that it had held talks with a "strong" private equity firm about taking a strategic stake in NMC. The potential investor has more than €10bn in assets under management, KGI said, and has a "dominant position" in several health care businesses in the CEE region.
"The name has been announced to NMC's management recently," it said.
Chairman Pavol Krupa said: "We see shares of NMC Health significantly undervalued after recent sell-off and our strategic partner in healthcare sector share our view. This is a great opportunity for us and our partner to take strategic stake in the biggest healthcare provider in the Middle East. We have informed NMC management that we also have interest to provide financing for Mr. Shetty's ambition to get NMC under his control, if necessary."
At 1205 GMT, NMC shares were up 8.6% at 844.84p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN