Troubled NMC Health Is Said to Plan Sale of Distribution Unit

31 Mar 2020, 09:47 PM IST

(Bloomberg) -- NMC Health Plc is planning a potential sale of its distribution business as it seeks to address liquidity concerns at the embattled Middle Eastern hospital operator, people familiar with the matter said.

The Abu Dhabi-based company is working with an adviser to gauge buyer interest in its NMC Trading unit, according to the people, who asked not to be identified because the information is private. NMC Health is seeking as much as $300 million for the business, the people said.

NMC Trading distributes products including Nestle SA food and beverages, Pfizer Inc. medicine and Unilever Plc personal-care products across the United Arab Emirates. It also markets foreign brands of medical equipment, educational materials, office supplies and veterinary products in the country.

The unit employs more than 1,700 people and distributes products to more than 10,000 points of sale including hypermarkets, gas stations and hospitals, according to its website.

Deliberations are at an early stage, and there’s no certainty they will result in a transaction, the people said. A representative for NMC Health declined to comment.

London-listed NMC Health, founded by Indian entrepreneur Bavaguthu Raghuram Shetty, has seen its stock plunge this year after allegations of fraud prompted an investigation by U.K. authorities. Its chairman and chief financial officer have also resigned after the company revealed more than $4 billion of undisclosed debt, and the company has lost its elite status as a member of the FTSE 100 index.