Two top NMC Health shareholders selling stock to pay back debts

Two of NMC Health's main shareholders will sell down their holdings in a bid to reduce their indebtedness, including that of corporate entities owned by them.

After the close of trading in London, on Tuesday, the company said that Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi would dispose of approximately $490.0m (£373.4m)-worth of shares in the UAE-focused hospital operator via an accelerated bookbuild.

The pair would also sell approximately $75.0m (£57.16m)-worth of stock in payments and foreign exchange platform Finablr.

Credit Suisse and Deutsche Bank were given the mandate for the two transactions, alongside Barclays Bank who was to act as joint bookrunner.

Fully 85.0% of the NMC shares on offer belonged to Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and the remainder to his associate.

The Finablr shares to be sold were owned by both businessmen equally.

NMC said the two were expected to be able to fully repay their borrowings with the net proceeds of the transactions.

Following the sale of NMC shares, Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi would be subject to a 360-day lock-up for his remaining stake in the firm, except to the extent that any of his borrowings remained outstanding.

Khaleefa Butti Omair Yousif Ahmed Al Muhairi's NMC shares would be subject to a 180-day lock-up.

The two businessmen also owned another approximately 7.0% of NMC's equity jointly via Infinite Investments LLC, which would be subject to a 180-day lock-up.

Any residual holdings of the two in Finablr would be subject to a 90-day lock-up.

On 17 December, short-seller Muddy Waters issued a report that called into question NMC's accounting for its debt and cash.

That was followed two days later by a Financial Times report according to which NMC had held talks to borrow $200.0m in a way that would not have shown up on its consolidated balance sheet.

NMC Health said the claims were "based on false information".

Since 23 December, three US law firms, Bragar Eagel & Squire, The Schall Law Firm, and Rosen National Trial Lawyers had kicked-off investigations into potential securities claims on behalf of NMC Health shareholders.