Dubai: For Abu Dhabi-based billionaire Bavaguthu Raghuram Shetty, 2019 is looking up.
Shares of NMC Health Plc, the London-listed hospital operator that he founded, soared as much as 42% on Thursday, erasing a big chunk of their decline for the year. Another major investment for the 77-year-old Indian-born investor, financial services company Finablr Plc, is up more than 25% from its recent low, wiping out the slump since its initial public offering in May.
NMC shares surged after Reuters reported that two groups have made competing bids for a 40% stake in the company, citing people familiar with the deal. One of the groups is backed by Chinese conglomerate Fosun, Reuters said.
NMC on Thursday also reported earnings in line with analyst estimates and said it plans to buy back as much as $200 million of stock. NMC was trading 26% higher at 11 a.m. in London.
The report of interest in the NMC stake held by United Arab Emirates-based investors stung the short sellers who had been betting on a further slump in NMC shares. Speculators had been targeting the company because of its high leverage, concern about corporate governance and rising receivables.