SINGAPORE – IHH Healthcare’s discussions to fully acquire Ramsay Sime Darby Health Care (RSDHC) for RM5.67 billion (S$1.8 billion) have been terminated, the Malaysian healthcare provider announced on Friday (Sept 9).
Earlier in March this year, the group revealed it had submitted a confidential, conditional, non-binding, indicative proposal to Australian multinational healthcare provider Ramsay Health Care and Malaysian trading conglomerate Sime Darby Holdings (SDH) for the acquisition.
Then, it said that discussions were preliminary and that no agreement had been reached yet.
IHH in its latest update announced that such discussions have concluded without resulting in a binding agreement.
RSDHC, a 50:50 joint venture between Ramsay and SDH, operates hospitals in Indonesia and Malaysia, a nursing college in Malaysia, and a day surgery facility in Hong Kong.
DBS Group Research was positive on news of IHH’s potential acquisition when it was announced in March, as it believed the group and RSDHC had complementary portfolios and that the deal could draw further synergies from a bigger and stronger cluster of hospitals.
RSDHC was also said in 2020 to have been planning an initial public offering in Malaysia that could raise some US$300 million (S$421.5 million), although such plans were later reported to have been put on hold.
Shares of dual-listed IHH Healthcare ended Wednesday one cent or 0.5 per cent higher at $1.94 on the Singapore Exchange.