Ramsay Health Care Ltd and Malaysian conglomerate Sime Darby Bhd are exploring a sale of their Asia-focused healthcare joint venture, Australia’s largest private hospital operator said on Wednesday.
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 6 billion ringgit. ($1.29 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 Ltd fell through in September last year, soon after a KKR & Co Inc-led consortium withdrew a near $15 billion offer for Ramsay.
IHH, one of Asia’s largest private healthcare groups had tabled a 5.67 billion ringgit offer for RSD, but a binding agreement could not be reached.
RSD reported an 18% jump in EBITDA to 266 million ringgit for fiscal 2022.
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
