|
 Muddy Waters challenged the value of NMC's assets and cash balance
as well as reported profits and debts, triggering a major sell-off
in the stock that has wiped out half the company's market value.
NMC, the largest private healthcare provider in the United Arab
Emirates, said on Monday the review would be undertaken by an
unidentified accounting firm and overseen by a committee of
independent NMC non-executive directors.
"We are confident that this review, when complete, will be entirely
confirmatory of the disclosures provided by the company to date,"
NMC said.
The company, the first from Abu Dhabi to list on the London Stock
Exchange, last week stood by its 2019 and 2020 forecasts, and issued
a detailed response to the allegations from Muddy Waters.
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Short selling involves borrowing an asset and selling it with the
aim of buying it back at a cheaper price and making a profit.
Muddy Waters, founded by American Carson Block, is known in
financial markets for declaring short equity positions on the basis
of its in-house research.
The company had no immediate comment on Monday on NMC's decision to
launch an independent review.
(Reporting by Pushkala Aripaka in Bengaluru; Additional reporting by
Maiya Keidan; Editing by Saumyadeb Chakrabarty and Mark Potter)
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