Ramsay Health Care, Sime Darby explore sale of Asia joint venture

RAMSAY Health Care and Malaysian conglomerate Sime Darby are exploring the sale of their Asia-focused healthcare joint venture, Australia’s largest private hospital operator said on Wednesday (Jun 28).

Reuters had reported in late-March that the companies were planning to revive a sale of the Malaysia-based Ramsay Sime Darby Health Care (RSD) joint venture in a deal that could value the business at RM6 billion. (S$1.7 billion).

“The decision has been reached following the receipt of significant inbound interest in RSD at values that are in shareholders’ interests to explore,” Ramsay said.

An earlier effort to sell RSD to IHH Healthcare fell through in September last year, soon after a KKR & Co Inc-led consortium withdrew a near US$15 billion offer for Ramsay.

IHH, one of Asia’s largest private healthcare groups had tabled a RM5.67 billion offer for RSD, but a binding agreement could not be reached.

RSD reported an 18 per cent jump in earnings before interest, taxes, depreciation and amortisation to RM266 million for fiscal 2022.

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The company, set up in 2013 through an equal joint venture, has continued to perform strongly in FY23, Ramsay said.

Sime Darby and RSD did not immediately respond to Reuters’ requests for comment.

RSD’s portfolio consists of 1,530 licensed beds across seven hospitals in Malaysia and Indonesia, according to Sime Darby’s 2022 annual report. REUTERS