Short-seller Muddy Waters goes short on NMC Health

Dubai: US-based short-seller Muddy Waters on Tuesday acquired a short position in UAE-based NMC Health Plc, sending the hospital operator’s London-listed shares plummeting nearly 30 per cent.

Short seller Carson Block’s firm expressed “serious doubts” about the NMC Health’s reported profits and debts, while also questioning the value of NMC’s assets, cash balance.

“NMC’s reported cash balances show two red flags that indicate they could be materially overstated,” the short seller said, adding NMC’s margins appear too high in comparison to other UAE-focused operators like Mediclinic International and Aster DM Healthcare.

“We believe that NMC has manipulated its balance sheet to understate debt,” Muddy Waters said.

NMC declined to immediately comment on the Muddy Waters report.

Shares of NMC Health plunged as much as 27 per cent, its biggest percentage loss since going public in 2012, which wiped out about $2 billion (Dh7.35 billion) in market value.