Sime Darby mulls spinoff by listing healthcare unit


Spinning off businesses is not new to Sime Darby. The conglomerate listed its plantation and property arms in 2017. Sime Darby has climbed about 8.7% this year, giving it a market value of about RM16.6bil.

KUALA LUMPUR: Sime Darby Bhd, one of Malaysia’s oldest conglomerates, is weighing a separate listing for its health care unit that could raise at least RM500mil, according to sources.

The company has held discussions with potential advisers for an initial public offering of Ramsay Sime Darby Health Care Sdn Bhd, the sources said.

A listing on Bursa Malaysia could happen as early as 2021, said the sources.

Sime Darby jointly owns the health care unit with Australia’s largest private hospital operator Ramsay Health Care Ltd.

Deliberations are at an early stage and details of the offering, including size and timeline, could still change, according to the sources.

A representative for Sime Darby declined to comment, adding that it would make announcements when necessary. A representative for Ramsay Health Care said they have no comment.

Spinning off businesses is not new to Sime Darby. The conglomerate listed its plantation and property arms in 2017. Sime Darby has climbed about 8.7% this year, giving it a market value of about RM16.6bil.

Sime Darby was looking to spend RM1bil each year on acquisitions and organic growth with a focus to expand its business of selling luxury cars as well as health cares services, chief executive officer Jeffri Salim Davidson said last November.

Ramsay Sime Darby Health Care was founded in 2013 when Sime Darby and Ramsay Health combined several hospitals in South-East Asia.

It runs six premium hospitals in Malaysia and Indonesia as well as a day surgery facility in Hong Kong, according to Sime Darby’s annual report.

Net income of Sime Darby’s health care business fell about 20% to RM39mil in its fiscal year ended June 30, from RM49mil a year ago, due to a drop in patient volume because of the pandemic as well as one-off impairments. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Ramsay , Sime Darby , healthcare , spinoff ,

   

Next In Business News

Maxis Awards returns, calling for submission
Garuda Indonesia files for Chapter 15 U.S. bankruptcy procedure - CEO
BNM unveils new measures to strengthen safeguards against financial scams
CIMB commits RM30bil SME financing
Bursa Malaysia enhances sustainability reporting framework with new climate change reporting
PETRONAS: North Malay Basin phase 3 block PM302 achieves first gas production
BoD must maintain independence, not be over reliant on management: SC
FBM KLCI slips at midday as investors hold back
Maybank wins multiple Asiamoney Awards in 2022
Ringgit slides further and touches 4.59 against US dollar at opening

Others Also Read