BofA, Deutsche Bank hired to sell Ramsay Sime Darby Health Care

 

Ramsay Sime Darby Health Care was set up in 2013 through an equal joint venture to expand its healthcare business in Southeast Asia. (Website pic)

PETALING JAYA: Sime Darby Bhd and Australia’s Ramsay Health Care Ltd have hired Bank of America (BofA) and Deutsche Bank to sell their US$1.3 billion (RM5.91 billion) healthcare joint venture, according to Reuters.

It said the companies could launch the sale of its Selangor-based Ramsay Sime Darby Health Care Sdn Bhd within the next two months, depending on market conditions, a source told the news agency.

Reuters had reached out with queries to Ramsay Sime Darby on the appointment of the banks but was referred to its owners.

Ramsay, Australia’s largest private hospitals operator, and Sime Darby subsequently referred Reuters to their announcements from June 28 that stated the joint venture partners were exploring the sale of the healthcare company.

Sime Darby clarified in its Bursa Malaysia filing on June 28 that there is still no confirmation a transaction will take place.

Deutsche Bank declined to comment, and Bank of America did not immediately respond to Reuters’ query.

Asian healthcare assets garner interest

The sale would be the largest healthcare deal in the region since 2019 and comes at a time when healthcare assets are attracting more interest as investors bet on the sector’s ability to weather tough economic conditions, the report said.

Just last week, Singapore’s Thomson Medical announced the acquisition of Vietnam-based healthcare facilities provider Far East Medical Vietnam for US$381.4 million (RM1.74 billion).

On March 29, Sime Darby said it was still undecided on whether to divest its healthcare joint venture with Ramsay.

The statement was made following a Reuters report which claimed the two parties were planning to revive the sale of the healthcare venture, which was set up in 2013.

In March last year, IHH Healthcare Bhd had submitted a non-binding indicative proposal to acquire Ramsay Sime Darby Health Care from the two groups for RM5.67 billion.

However, talks on the proposed acquisition broke down on Sept 9, 2022.

According to Sime Darby’s 2022 annual report, Ramsay Sime Darby Health Care’s portfolio consists of 1,530 licensed beds across seven hospitals in Malaysia and Indonesia, and the company employs 4,500 people.

At the closing today, Sime Darby’s share price was one sen or 0.49% higher at RM2.07, giving it a market capitalisation of RM14.11 billion. - FMT