NMC Healthcare PLC (LON:NMC) saw its shares drop sharply on Tuesday after two controlling shareholders announced plans to sell a £373mln stake in order to cover their debts.
In late morning trading, the FTSE 100-listed group’s shares were 14.7% lower at 1,275p, albeit above the earlier session low of 1,200p.
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In a brief statement, the Middle East-focused hospitals owner and operator noted the pricing announcement issued in connection to the sale of shares in the group beneficially owned by Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi, known as Khalifa Bin Butti.
It said: “NMC recognises that the motivation for the transaction, as made clear in the launch statement of 7 January 2020, pertains only to the means of financing the investors' shareholdings and not to the Company's operating performance nor long-term prospects.”
The group concluded that Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khalifa Bin Butti remain “supportive and long-term investors in NMC.”
The two well-known Abu Dhabi investors are the largest shareholders in NMC - Saeed Bin Butti holds about 17.4%, while Khalifa Bin Butti, who is also NMC’s executive vice-chairman, is a 15% shareholder.
The two UAE investors also announced overnight that were selling US$75mln worth of shares in Travelex owner Finablr PLC (LON:FIN) via an accelerated bookbuild.
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NMC shares have nearly halved in value over the past months after the group’s financial position was questioned by US hedge fund, Muddy Waters.
The short seller raised doubts over NMCs cash and debt positions, but the blue-chip firm has denied the allegations and has committed to an independent review of its finances.