Sime Darby JV with Australia's Ramsay, gains RM340m

Sime Darby JV with Australia's Ramsay, gains RM340m
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 26 March 2013 18:03


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KUALA LUMPUR (Mar 26): SIME DARBY BHD [] is set to expand its healthcare division in Asia by forming a 50:50 joint venture (JV) with Australia-based Ramsay Health Care Ltd.

In an announcement to Bursa Malaysia, Sime Darby said it will inject its healthcare and education business into Sime Darby Global Healthcare Sdn Bhd.

Ramsay’s wholly owned subsidiary AH Holdings Health Care Pty Ltd, meanwhile, will also inject its Indonesian healthcare business into Sime Darby Global Healthcare.

“Sime Darby Global Healthcare will subsequently be renamed as Ramsay Sime Darby Health Care Sdn Bhd,” said the group in the announcement.

Sime Darby explained the JV will enable Sime Darby to monetise its 50% investment in SD Healthcare by recognising an estimated net gain on disposal of RM340 million.

Additionally, the group said the JV is part of its strategy to accelerate the growth plans of its healthcare business, in order to capture the rapidly growing opportunities in Asia.

“The JV also offers an opportunity for Sime Darby to gain a foothold in the Indonesian healthcare market which has attractive economic and demographic fundamentals and opportunities in the mid to long term.”