Sime Darby Berhad and Ramsay Health Care Limited have today entered into a joint venture to expand their healthcare businesses in Southeast Asia initially and eventually throughout the whole region.
The deal, subject to regulatory approvals, will combine all Sime Darby’s portfolio of healthcare assets in Malaysia with Ramsay’s three hospitals in Indonesia, under a new joint venture company. This new company (to be known as “Ramsay Sime Darby Health Care”) will be equally owned by Ramsay and Sime Darby.
Ramsay operates two hospitals in Jakarta, namely; RS Premier Jatinegara and RS Premier Bintaro, and one in Surabaya: RS Premier Surabaya.
Sime Darby has three hospitals in Malaysia, namely Sime Darby Medical Centre Subang Jaya, Sime Darby Medical Centre Ara Damansara and Sime Darby Medical Centre Park City. It also operates a nursing and health sciences college.
Both Sime Darby Medical Centre Ara Damansara and Sime Darby Medical Centre Park City opened in 2012 and are expected to be key growth drivers for the joint venture.
The joint venture marks Ramsay’s first major step into Asia since acquiring its Indonesian hospitals in 2005 and Sime Darby Healthcare’s first expansion outside of Malaysia. The aim of the joint venture will be to build a quality portfolio of hospitals throughout Asia.
Sime Darby’s President and Group Chief Executive Dato’ Mohd Bakke Salleh said the joint venture was in line with the group’s first five-year strategy blueprint to grow and strengthen its existing businesses.
“There is tremendous potential in the healthcare industry and we do not want to miss this opportunity. ASEAN alone has 600 million people with a rising middle class that will demand quality healthcare.
“Having Ramsay, a major global hospital operator, as a partner, will help us spur some of the expansion of our healthcare services into new markets. Both companies have the same goals of creating a major healthcare presence in Asia,” said Dato’ Bakke.
Ramsay Health Care’s Managing Director Christopher Rex said the joint venture with Sime Darby would provide a solid platform for expansion and further acquisitions in the Asian health care sector.
“We have been cognizant for some time of the attractive market dynamics in Asia with a burgeoning middle class and an ageing population, and have been looking for the right organisation to partner with,” Mr Rex said. “This deal with Sime Darby presents a significant opportunity for Ramsay to expand its quality portfolio of hospitals in Asia and apply its proven healthcare management expertise, with a company that has extensive experience in the Asian marketplace.
“Since 2005, Ramsay Health Care has significantly expanded its global hospital portfolio and this joint venture is an important step in our broader strategy of becoming a major hospital operator.”
Sime Darby Healthcare reported a profit before interest and tax of RM26 million on total revenue of RM358 million for the year ended 30 June 2012.
Ramsay Indonesia health care division recorded a profit before interest and tax of IDR61.9 billion (RM19.7 million) on revenue of IDR 603.6 billion (RM192 million) for the year ended 30 June 2012.
Sime Darby Healthcare
The Sime Darby Healthcare Group is a division within Sime Darby Berhad, Malaysia’s largest conglomerate. The Group is currently comprised of Sime Darby Medical Centre Subang Jaya (SDMC SJ), its flagship tertiary care 393-bed hospital; Sime Darby Medical Centre Ara Damansara (SDMC AD), a 220-bed hospital and Malaysia’s first stand-alone Centre of Excellence focusing on heart, brain, spine and joint cases; Sime Darby Medical Centre ParkCity (SDMC PC), a 300-bed hospital with Centres of Excellence in women, children and elderly health; and Sime Darby Nursing & Health Sciences College.
Ramsay Health Care
Ramsay Health Care is the largest private hospital group in Australia and a growing global healthcare group with hospitals in France, the United Kingdom and Indonesia, with 116 hospitals across four countries. Established 1964, Ramsay is listed on the Australian Stock Exchange. The Company is well respected throughout the healthcare industry for operating quality private hospitals and for its excellent record in hospital management and patient care.