BR Shetty's Finablr to appoint advisor to probe into financial arrangements
Dubai - The company will conduct an independent financial investigation in the aftermath of financial crisis at its sister company NMC Health.
By Waheed Abbas
Published: Thu 12 Mar 2020, 1:55 PM
Last updated: Thu 12 Mar 2020, 10:51 PM
UAE Exchange's holding company, Finablr, owned by Dr BR Shetty, will conduct an independent financial investigation to look into its accounting books in the aftermath of the financial crisis at its sister company NMC Health.
The company said it is facing a liquidity squeeze at both group and operational business levels as well as severe adverse perceptions in the market that the circumstances surrounding NMC Health, which is also owned by Dr Shetty.
Finablr has been feeling the heat due to financial issues at its sister company, hammering its shares by around 80 per cent.
The UAE-headquartered firm said the downgrade of Travelex, a credit squeeze at its foreign exchange and remittance firm, as well as travel restrictions imposed to limit the spread of Covid-19, has put significant constraints on the company's access to the daily liquidity it needs to manage its business effectively and its ability to negotiate longer-term financing.
"Finablr is currently taking urgent steps to assess accurately its current liquidity and cash-flow position, which has been adversely impacted by a number of factors," it said in a statement on Thursday, adding that adverse perceptions in the market that the circumstances surrounding NMC Health are relevant to Finablr, which have exacerbated current levels of stress on its cash-flow position.
"Following further discussions with the company's executive management, promoter shareholders, independent auditors, and in light of meetings of the audit committee, the board has been reassured that the company has no undisclosed related-party transactions or unrecorded on or off-balance-sheet financing arrangements. Nevertheless, to provide further assurance to the board and the market that this is the case, the board will shortly commission an independent investigation into the company's financial arrangements," said the statement posted on London Stock Exchange where it is listed.
"The [Finablr] board intends to appoint an independent financial advisor as soon as possible to advise the company with respect to these matters."