Indian billionaire Shetty faces the second blow in London

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Source: London – Reuters

Shares of Venable Payments Company plunged 27%, Friday, after disclosing that the Indian billionaire b. R. Shetty, who owns a majority stake in it, has pledged more than half of the company’s shares as collateral for a debt it acquired to finance the purchase of Travelex.

Commenting on the decline in the share price, Venabeler said in a statement that she sought clarification from Shetty’s BRS Investment Company, as it reassured her about the security of her acquisition of Venable and the talks she had with her group of banks regarding the repayment or refinancing of the debt.

Venabeler declined to give further details when Reuters called her.

The value of another London-listed company, Chitty NMC Health, was cut in half after being damaged in December by a move by the American company, Maddy Waters, for short sale.

In 2015, Finapler bought Travelex, the travel finance specialist, which this month was attacked by a cyberattack that stalled its systems for weeks and confused holidaymakers.

In its published statement after the markets closed yesterday, Venabler said that the cyber incident in Travelex is currently being processed and will not affect the 2019 results and is not expected to have a significant impact on the company’s performance this year.

Venable lost more than 300 million pounds ($ 394.32 million) of its market value yesterday, to shrink to 665 million pounds.

“The outlook is bad for Finapler. The fact that the founder used nearly half of the company’s shares as collateral for a loan indicates that the situation is serious,” said David Madden of CMC Markets.

“Certainly, the Travelex crisis is severely affecting the founder and Che is striving to secure the financing. Even if the financing problem is resolved, the Venabler share price may suffer to recover – just like the MCC Health.”

Shetty has not yet responded to requests for comment.

The online attack on Travelex has made most of the major British banks, which depend on the company to provide travel money to clients, unable to receive orders online.

Venable was put on the London Stock Exchange in May last year, and has lost 44% of its value since.



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