Ramsay Health Care and its joint venture partner have agreed a deal to sell the Ramsay Sime Darby Health Care venture in Malaysia to a TPG Capital-led consortium for $US1.3bn ($2.04bn).
TPG Capital and Hong Leong Group control hospital operator Columbia Asia, which has snapped up the business ahead of Ramsay’s annual general meeting on November 28.
Investing in the deal with TPG are the Abu Dhabi Investment Authority and Employees Provident Fund.
Ramsay owns the Sime Darby Health Care business in a 50-50 joint venture with Malaysia multinational conglomerate Sime Darby.
It includes four hospitals in Malaysia and three in Indonesia.
Analysts have valued Ramsay Health Care’s stake at $750m-$800m after tax.
Working on the sale are Bank of America and Deutsche Bank.
Working for Sime Darby is investment bank JPMorgan.
In March last year, the joint venture received an offer from IHH Healthcare to buy the business for $US1.33bn, but a deal never eventuated.
The business made about $426m of revenue and $98m of earnings before interest, tax, depreciation and amortisation in the year to June, up 16 per cent on the previous corresponding period, with higher volumes and lower Covid-19-related expenses including staff absenteeism.
The equity accounted contribution from the joint venture increased 30.1 per cent on the previous corresponding period to $19.9m.
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