BR Shetty, founder and co-chairman of NMC Health, has resigned from the board of the FTSE 100-listed hospital operator following questions over the group’s ownership structure and finances.
Mr Shetty, an Indian entrepreneur, is to step down with immediate effect and HJ Mark Tompkins will act as sole chairman of the company, NMC said in a brief statement on Monday.
The abrupt departure of the man who brought NMC to the London market in 2012 comes after the Middle East’s largest private healthcare group had announced it was seeking urgent clarification over the size of the shareholdings of NMC founder BR Shetty and other controlling investors, prompting UK regulators to begin an investigation.
Mr Shetty and fellow board member and shareholder Khalifa al-Muhairi were asked to step back from the board last week. Mr al-Muhairi resigned on Friday.
Shares in NMC have plummeted since an attack by short-seller Muddy Waters in December questioned the group’s finances, and raised doubts over its debt and asset valuations — charges NMC has denied.
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NMC announced the resignations of two other board members on Monday, both linked to the group’s principal shareholders. Hani Buttikhi, chief investment officer, and non-executive director Abdulrahman Basaddiq were appointees of NMC’s controlling investors.
Mr Tompkins, now sole chair of NMC, said he “appreciated” the situation the duo had been placed in following last week’s disclosure of questions over the group’s ownership structure. Mr Tompkins did not comment alongside news of Mr Shetty’s exit.