(Reuters) -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.
Shares in Ramsay jumped 6.8% to A$58.44, marking their biggest intraday percentage jump since April last year. The stock was also the top gainer in the benchmark index.
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.
The company said there were multiple interest parties, but refrained from divulging further details on them.
An earlier effort to sell RSD to IHH Healthcare Ltd fell through last September, 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, and has continued to perform strongly in FY23, Ramsay said.
“At this stage, there is no assurance that the sale process will result in a transaction,” Sime Darby said.
RSD was set up in 2013 through an equal joint venture to expand their healthcare business in Southeast Asia. But since April last year, it has divested the Ramsay Sime Darby Healthcare Educational Services business and sold the day surgery facility in Hong Kong.
Its portfolio consists of 1,530 licensed beds across seven hospitals in Malaysia and Indonesia, according to Sime Darby’s 2022 annual report. The firm employs 4,500 people.
($1 = 4.6620 ringgit)
(Reporting by Harish Sridharan in Bengaluru; Editing by Sriraj Kalluvila and Sherry Jacob-Phillips)
