PETALING JAYA: IHH Healthcare Bhd
’s offer to buy Ramsay Sime Darby hospitals from joint owners, Sime Darby Bhd and Australia’s Ramsay Health Care Ltd, has failed with no binding agreement reached between the parties.
In a filing with Bursa Malaysia yesterday, IHH said its discussions between Ramsay and Sime Darby have concluded without stating any reason for the failed bid that was valued at RM5.67bil.
This comes on the heels of private equity firm KKR & Co Inc-led group’s decision to withdraw its A$20.1bil (RM61.96bil) all-cash bid for Ramsay Health Care Ltd last month after the operator of Australia’s largest network of private hospitals said it would not engage further on an alternative cash-and-shares proposal.
According to Ramsay Health Care’s recent financial release, for the financial year ended June 30, 2022, Ramsay Sime Darby made a total turnover of RM1.18bil and earnings before interest and tax of RM159mil.
Ramsay Health Care said the equity accounted contribution from Ramsay Sime Darby, increased 41.7% to A$15.3mil (RM47.2mil) for the period, primarily reflecting the contribution from the Bukit Tinggi Medical Centre in Malaysia acquired in May 2021.
The growth in revenue and profit of Ramsay Sime Darby was partly due to the inclusion of a full year of the Bukit Tinggi Medical Centre and contribution from Covid-19 related activities including testing and vaccination.
In March, Ramsay and Sime Darby received a RM5.67bil buyout offer from IHH Healthcare, Asia largest private healthcare group, for Ramsay Sime Darby’s business in Malaysia and Indonesia.
IHH Healthcare shares closed five sen lower at RM6.17 on the news, valuing it at RM54.3bil.
Sime Darby shares closed six sen lower at RM2.23, giving it a market capitalisation of RM15.2bil.
