SIME Darby Bhd is exiting the healthcare enterprise by promoting its total 50 per cent fairness curiosity in Ramsay Sime Darby Well being Care Sdn Bhd (RSDH) to Columbia Asia Healthcare Sdn Bhd (Columbia Asia) for RM2.84 billion.
It mentioned wholly-owned subsidiary Sime Darby Holdings Bhd (SDHB) and Ramsay Well being Care Ltd’s subsidiary AH Holdings Well being Care Pty Ltd, which owns the remaining 50 per cent of RSDH, at the moment inked an settlement with Columbia Asia to eliminate their mixed 100 per cent curiosity in RSDH for RM5.68 billion.
In a submitting with Bursa Malaysia, Sime Darby mentioned the deal would allow the group to unlock the worth of its healthcare property, which have beforehand been deemed non-core, with a RM2 billion acquire on disposal.
“The proceeds from the proposed disposal will allow Sime Darby and its subsidiaries to additional strengthen its core companies of business and motors by paring down its borrowings arising from the acquisition of UMW Holdings Bhd,” it mentioned.
This, Sime Darby famous, would decrease its gearing and supply additional stability sheet headroom to the group.
RSDH operates 4 hospitals in Malaysia and three hospitals in Indonesia.
Columbia Asia is a Malaysia-based worldwide non-public healthcare firm and a wholly-owned subsidiary of Columbia Asia Healthcare Pte Ltd (CAHSG). CAHSG is 99.9 per cent owned by HLT Healthcare Holdings Ltd, which in flip is collectively owned by Malaysian conglomerate, the Hong Leong Group, and One Well being Holdings, which is owned and managed by TPG-managed funds.
In an announcement, Sime Darby group chief govt officer Datuk Jeffri Salim Davidson mentioned whereas the hospital enterprise is a superb asset, the group has all the time maintained its concentrate on core buying and selling companies of motors and industrial.
“The supply from Columbia Asia was one we couldn’t refuse,” he mentioned.
In the meantime, Columbia Asia director Tunku Ali Redhauddin ibni Tuanku Muhriz mentioned RSDH has a novel platform of hospitals with a protracted historical past of fantastic affected person take care of the communities that it serves in Malaysia and Indonesia.
“This can enormously complement Columbia Asia, and we stay up for working with the medical doctors, nurses and different colleagues from each RSDH and Columbia Asia to proceed contributing to healthcare ecosystems in Malaysia, Indonesia and Vietnam,” he mentioned.
On the proceeds, Sime Darby mentioned it could be utilised to repay the borrowings for the acquisition of UMW Holdings Bhd and/or to fund the money outlay for the obligatory common supply of the acquisition.
The group expects the proposed disposal to be accomplished within the third quarter of economic 12 months ending June 30, 2024. — BERNAMA