Sime Darby and Ramasay Health Seeking to Sell their Asian Division

Ramsay Health Care Ltd and Malaysian conglomerate Sime Darby Bhd are looking to sell their Asia-focused healthcare joint venture, according to Australia's largest private hospital operator.

Ramsay shares rose 6.8 percent to A$58.44, the highest intraday percentage gain since April of last year. In addition, the stock was the top gainer in the benchmark index.

Reuters reported in late March that the companies were planning to resurrect a sale of the Malaysia-based Ramsay Sime Darby Health Care (RSD) joint venture for 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 per cent 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.