Sime Darby Bhd has officially announced the sale of Ramsay Sime Darby Health Care Sdn Bhd (RSDH) to Columbia Asia Healthcare Sdn Bhd for RM5.7 billion in cash, marking Sime Darby’s exit from the healthcare sector. The joint venture between Sime Darby and Australia’s Ramsay Health Care Ltd operates four hospitals in Malaysia and three in Indonesia.
Sime Darby Holdings Bhd and Ramsay’s AH Holdings Health Care Pty Ltd, both wholly-owned units, have entered into an agreement with Columbia Asia for the 100% equity interest disposal in RSDH, as stated in a Bursa Malaysia statement. Columbia Asia, a subsidiary of Columbia Asia Healthcare Pte Ltd, is 99.9% owned by HLT Healthcare Holdings Ltd, a joint venture between the Hong Leong Group and One Health Holdings (OHH), controlled by TPG-managed funds.
TPG-managed funds will participate in the transaction, along with co-investors via OHH, including the Employees Provident Fund (EPF) and a subsidiary of the Abu Dhabi Investment Authority. Post-acquisition, EPF and the Abu Dhabi Investment Authority will jointly own approximately 25% of OHH.
The deal enables Sime Darby to unlock the value of its healthcare assets, yielding a RM2 billion gain on disposal. This move aligns with Sime Darby’s strategic commitment to focus on core trading businesses in the industrial and motor sectors, according to CEO Datuk Jeffri Salim Davidson.
Sime Darby had received various offers for RSDH, with Columbia Asia emerging as the preferred bidder. The disposal reflects Sime Darby’s emphasis on streamlining its portfolio and directing capital to strengthen core businesses.
The sale is expected to be finalized in the third quarter of 2024, subject to regulatory approvals. The group’s entry into the healthcare sector dates back to 1985 with the acquisition of Subang Jaya Medical Centre, later forming a joint venture with Ramsay in 2013 to establish RSDH. The move follows Sime Darby’s ongoing acquisition of UMW Holdings Bhd in a RM5.84 billion deal, positioning it as a major player in the regional automotive industry.