(Reuters) – Ramsay Healthcare Limited (RHC.AX) and Malaysian group Sime Darby Bhd (SIME.KL) said they are exploring selling their Asia-focused healthcare joint venture, Australia’s largest private hospital operator reported on Wednesday.
Shares in Ramsay jumped 6.8% to A$58.44, marking the biggest intraday percentage jump since April last year. The stock was also the biggest gainer in the benchmark index. (.AXJO)
Reuters reported in late March that the two companies were planning to revive the sale of the Malaysia-based Ramsay Syme Darby Healthcare (RSD) venture in a deal that could value the business at 6 billion ringgit ($1.29 billion).
“The decision was reached after receiving significant internal interest in RSD with values in the interest of shareholders to explore,” Ramsey said.
The company said that there are multiple parties with interests, but declined to disclose more details about them.
An earlier attempt to sell RSD to IHH Healthcare Ltd (IHHH.KL) failed until last September, shortly after the KKR & Co (KKR.N) consortium withdrew its roughly $15 billion bid for Ramsay.
IHH, one of Asia’s largest private healthcare groups, made a bid of 5.67 billion ringgit for refugee status determination, but no binding agreement was reached.
Ramsey said RSD posted an 18% jump in EBITDA to RM266 million for fiscal year 2022, and continued its strong performance in fiscal year 2023.
“At this point, there is no guarantee that the sale will result in a transaction,” Syme Darby said.
RSD was set up in 2013 by a joint venture of equals to expand healthcare business in Southeast Asia. But since April last year, it has divested Ramsay Sime Darby Healthcare Services, an educational company, and sold its daily surgery facility in Hong Kong.
Its portfolio consists of 1,530 licensed beds across seven hospitals in Malaysia and Indonesia, according to Sime Darby Annual Report 2022. The company employs 4,500 people.
($1 = 4.6620 ringgit)
Additional reporting by Harish Sridharan in Bengaluru. Editing by Sriraj Kaluvella and Sherry Jacob Phillips
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