NMC Health's administrators have begun a sale process to flush out potential bidders for its core healthcare businesses in the UAE and Oman.
The sale is being run by financial advisers Perella Weinberg Partners and Resonance Capital in parallel to restructuring discussions that are ongoing with the group's 80-plus local, regional and international lenders.
The company said in a presentation to lenders that its core business achieved gross revenue of $1.54 billion last year, 6.1 per cent lower than in 2019.
However, savings achieved on labour, cost of goods sold and other expenses meant earnings before interest, tax, depreciation, amortisation and one-off costs were just 1.7 per cent lower at $106.3 million. It incurred one-off costs, including restructuring costs, of $7.9m.
Last year was "tumultuous" for the organisation, the company's chief executive, Michael Davis, said during a media briefing on Wednesday evening.
"We faced many macro issues with the Covid-19 pandemic that are more global issues, and also more internal issues with the discovery of the fraud and the undisclosed debt. But in spite of that, I am very, very proud of the organisation in 2020 and we did quite well," he added.
NMC Health was placed into administration in April last year following the discovery of more than $4bn worth of previously undeclared debts at the group, which was founded by BR Shetty in 1975 and grew to become the biggest privately-owned healthcare company in the UAE. In total, the group owes more than $6.8bn in loans and guarantees.
Its main UAE trading arm, NMC Healthcare, was placed into administration in the Abu Dhabi Global Market Courts in September to stave off claims filed in the Emirates. The ADGM ruling was recognised by the DIFC Courts in November, meaning six claims filed against the company in that jurisdiction have now been stayed. The company is also facing 15 actions from lenders in onshore courts.
Administrators devised a three-year turnaround plan based on its core UAE and Oman operations in August. A number of non-core assets have already been sold off, including the Eugin Group of fertility clinics in Spain, the US and Latin America, for €430m in December.
Discussions around other non-core sales, including UK-based Aspen Healthcare, are ongoing.
"If the right buyer comes along at the right price we'll further push along the sale of the non-core assets," Mr Davis said.
NMC is also still in talks with Hassana Investment Company, part of Saudi Arabia's General Organisation for Social Insurance, about its joint venture in the kingdom, which is not part of a formal sale process, Mr Davis said.
"It's important for us to ensure we bring the most value for the stakeholders, so discussions ... are ongoing but as it is right now it's business as usual in Saudi Arabia," he said.
Both the sale and the lender-led restructuring process being considered for the core UAE and Oman operations are for the business as a whole and a break-up is not under consideration, Mr Davis said.
"At this point, the business is worth more as a whole," he said.
The presentation document to lenders states that a preliminary assessment indicates there is "higher recovery expectations for creditors from a plan of reorganisation scenario" than from a sale.
Once it has received offers from qualified bidders, the company and its stakeholders "will evaluate those bids alongside the proposed plan of reorganisation", it said.
'Champions'
Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
UAE currency: the story behind the money in your pockets
Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More from Neighbourhood Watch:
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
MATCH INFO
Real Madrid 2
Vinicius Junior (71') Mariano (90 2')
Barcelona 0
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
more from Janine di Giovanni