UAE-based NMC Healthcare sale inevitable but not imminent, CEO says

NMC Healthcare, the UAE hospital group that collapsed under more than $4 billion of hidden debt in 2020, has attracted acquisition interest but is not running a formal sale process, its CEO, as the bank-owned company focuses on stabilising operations and rebuilding trust after one of the region’s biggest corporate scandals.

“The company will still be sold. Of that, there is no doubt – banks do not hold these assets for long,” Chief Executive David Hadley told reporters in Dubai. “But right now, we are not openly looking to sell.”

Hadley said NMC had been approached by a potential buyer in 2024 but no deal materialised. “We were approached to be acquired, but there were no official offers that changed hands and there was no meeting of terms,” he said, adding that the discussions became a distraction for management.

NMC’s collapse and creditors’ takeover

NMC, once the UAE’s largest private healthcare operator, entered administration in 2020 after a short-seller report by Muddy Waters alleged the company had overstated cash balances and understated debt. The company later disclosed billions of dollars in previously unreported borrowings, triggering its collapse, delisting from the London Stock Exchange and a wave of litigation involving lenders, auditors and former executives.

The healthcare assets that survived the restructuring now sit under a separate operating group owned by creditors, led by Abu Dhabi Commercial Bank (ADCB), following a debt-for-equity swap. Legal proceedings related to the former holding company continue in London, including a high-profile case against auditor EY, but Hadley stressed that the current business is legally and financially ring-fenced.

“If NMC Limited in London wins a court case, that money doesn’t come to us. We can’t build hospitals with that,” he said. “It’s completely separate. There are Chinese walls between us.”

Hadley, a healthcare industry veteran who previously led Mediclinic Middle East, joined NMC in early 2023 and took on day-to-day leadership as the group emerged from administration. Since then, management has prioritised operational clean-up, governance reforms and selective investment in core assets.

“Our shareholders are very supportive of the strategy,” Hadley said. “These building projects we’re busy with need to be completed, or at least near completion, before any sales process.”

NMC is profitable again, according to Hadley, though he declined to disclose financial figures. The group employs around 11,000 to 12,000 staff and operates roughly 70 facilities, down from more than 80 before the collapse after divesting non-core and overseas assets.

The company has ruled out an initial public offering in the near term, although Hadley said it remained “an option” for lenders seeking an eventual exit. “It’s not the preferred option right now,” he said. “We want to focus on execution.”

M&A interest amid healthcare consolidation

Healthcare assets continue to attract long-term investors despite heavy capital requirements, Hadley said, particularly as populations grow and governments seek to ease pressure on public systems.

“Everybody sees healthcare as a safe haven,” he said. “There’s a lot of people who want healthcare assets because they want to put their money into something secure for the long term.”

While he declined to name potential suitors, Hadley said interest typically comes from strategic healthcare operators and long-term capital rather than short-term investors. Sovereign-backed healthcare platforms in the UAE, including PureHealth and M42, have expanded aggressively in recent years through acquisitions and consolidation.

NMC itself is pursuing acquisitions selectively, particularly in Dubai, where it has a smaller footprint than in Abu Dhabi. “Standalone hospitals just don’t work anymore,” Hadley said. “You’ve got to be part of a bigger group.”

Founded in 1975 by businessman B.R. Shetty, NMC grew rapidly across the Gulf and beyond, listing in London in 2012 and reaching a peak valuation of more than $10 billion. The company’s collapse in 2020 marked one of the largest corporate failures in Middle East history.

Shetty has denied wrongdoing, saying he was misled by others within the organisation. Investigations and lawsuits involving former executives, lenders and auditors remain ongoing.

Hadley said the current management team runs NMC “as a normal healthcare organisation,” independent of those proceedings. “There is a clear line between the old NMC and the new NMC,” he said.

For now, management is focused on strengthening the business ahead of any eventual transaction. “We’re on a journey,” Hadley said. “And that journey needs to be completed properly.”