Exclusive-Ramsay, Sime Darby arrange to renew sale of Asia healthcare venture- sources

March 30, 2023 : Australia’s biggest private hospital operator Ramsay Health Care and Malaysian empire Sime Darby plan to revitalize the sale of their Asia-focused healthcare joint collaboration in a deal that could appreciate the business at some 6 billion ringgit ($1.36 billion), two sources with details of the matter told Reuters.

Three sources stated that the companies are in talks with financial advisors to analyze a sale of Selangor, Malaysia-located Ramsay Sime Darby Health Care to strategic investors.

Reviews were ongoing, and no decisions have yet been made on the sale, told the sources, refusing to be named as the matter is secret.

Ramsay refused to comment.

“Sime Darby Berhad persists to review strategic growth options for our healthcare piece,” a company spokesperson told Reuters in an emailed comment. “Any decisions will be made with a site on creating value for the party.”

The possible revival of the deal comes as healthcare assets gain favour, with investors gambling on the sector’s ability to face the current challenging economic conditions.

The Australian and Malaysian businesses’ earlier discussions to sell the joint collaboration to Malaysia’s IHH Healthcare fell through six months back.

IHH, one of Asia’s most famous private hospital operators, submitted an indicative submission in March 2022 to buy Ramsay Sime Darby Healthcare.

Two sources told the Australian and Malaysian companies were also considering an IPO for the joint venture on the Malaysia Stock Exchange.

Meetings for the joint venture’s sale was put on hold in early September, weeks after a group directed by private equity firm KKR & Co Inc withdrew an almost $15 billion all-cash buyout offer for Australia-listed Ramsay Healthcare.

Ramsay Sime Darby was founded in 2013 through an equal joint venture of Ramsay & Sime Darby to grow their healthcare business in Southeast Asia.

Its portfolio consists of 1,567 certified beds throughout seven hospitals in Malaysia & Indonesia and a day surgery structure in Hong Kong, according to Sime Darby’s 2021 annual notice.