Ramsay Health Care, Australia’s biggest operator of private hospitals, has agreed to an equal joint venture with Sime Darby Bhd to manage their Asian health-care assets.
Ramsay’s three hospitals in Indonesia would be combined with Sime Darby’s Malaysian assets, the Sydney-based company said in a statement to the Australian stock exchange.
Under the deal, expected to be completed by July 1 subject to regulatory approval, Ramsay will buy 50 per cent ownership in Ramsay Sime Darby Health Care through its Indonesian assets and cash totaling about A$120 million ($126 million).
Ramsay chief executive Chris Rex said the joint venture would provide a platform for expansion and further acquisitions in Asia after Ramsay posted its slowest pace of revenue expansion in six semi-annual periods.
Sime Darby chief executive Mohd Bakke Salleh said the combination would help the company strengthen its health-care business and enter new markets.
Ramsay gained 1.9 per cent to close at A$31.50 in Sydney before the announcement.