NMC, the embattled UAE health provider, said it has been notified by advisers to former chairman BR Shetty regarding his 2.5 million shares which were in custody of First Abu Dhabi Bank.
Almost 4.8 million shares of Mr Shetty's were held in a nominee account in Falcon Private Bank which were then transferred to First Abu Dhabi Bank on February 5. Out of these, 2.5 million shares were sold by First Abu Dhabi Bank, Mr Shetty's advisers said.
"Dr BR Shetty and his advisers are investigating the details and legal basis of these transactions and the status of the remaining shares as part of the ongoing legal review," the healthcare firm said in a statement to the London Stock Exchange, where its share trade.
NMC, the UAE's largest healthcare provider, is seeking a standstill on $2 billion (Dh7.34bn) of debt. The company's stock has lost two-thirds of its value after short-seller Muddy Waters Research claimed in a report published in December that NMC had inflated the prices of companies it acquired and manipulated its balance sheet. The company denied the claims and commissioned an independent review by former FBI director Louis Freeh’s company.
Moelis & Company, PwC and Allen & Overy were appointed as independent financial advisers to help the company manage its liquidity and operational measures.
NMC temporarily suspended trading of its shares on the LSE in February following the dismissal of top executives from the firm, which owns and manages more than 200 facilities, including hospitals, medical centres, day surgery centres and home health clinics across the UAE, UK, and Europe.
The company removed its chief executive Prasanth Manghat and granted its finance chief extended sick leave at the end of last month. That followed the resignations of Mr Shetty, and former vice-chairman Khalifa Al Muhairi last month amid concerns that they may they have misstated their ownership in the company.
The UK’s Financial Conduct Authority (FCA) began investigations into NMC's activities soon after the suspension.