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(Oct 20): Sime Darby Bhd, one of Malaysia’s oldest conglomerates, is weighing up a separate list for its healthcare unit that could raise at least RM500 million, according to people familiar with the matter.
The company has been in talks with potential advisers for an initial public offering of Ramsay Sime Darby Health Care Sdn Bhd, the people said. A listing on the Malaysian stock exchange could occur as early as 2021, said the people, who asked not to be identified because the information is private. Sime Darby is the joint owner of the healthcare unit with Australia’s largest private hospital operator, Ramsay Health Care Ltd.
The deliberations are at an early stage and the details of the offer, including the size and schedule, could still change, the people said. A representative for Sime Darby declined to comment, adding that he will make announcements when necessary. A representative for Ramsay Health Care said they have no comment.
The business split is not new to Sime Darby. The Malaysian conglomerate included its plantation and property branches in 2017. Sime Darby is up about 8.7% in Kuala Lumpur this year, giving it a market value of around $ 4 billion. Sime Darby was looking to spend RM1 billion every year on acquisitions and organic growth with a focus on expanding its luxury car sales and healthcare services business, its chief executive, Datuk 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 Southeast Asia. He runs six premium hospitals in Malaysia and Indonesia, as well as an outpatient surgery center in Hong Kong, according to Sime Darby’s annual report.
Net income from Sime Darby’s healthcare business fell approximately 20% to RM39 million in the fiscal year ending June 30, from RM49 million a year ago, due to a drop in volume. of patients due to the pandemic and specific disabilities.
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