KULIM (March 28): The proposal to sell Ramsay Sime Darby Healthcare Sdn Bhd (RSDH) to IHH Healthcare Bhd for RM5.67 billion is still at a preliminary stage, said Sime Darby Bhd chief executive officer Datuk Jeffri Salim Davidson.

"We have received the offer from IHH and we are going through a diligence process. That is what we are doing at the moment. Beyond that, I cannot say anything.

"No agreement has been reached yet. It's too early," he told The Edge after the launch of the assembly facility for Porsche vehicles in Kulim, Kedah on Monday (March 28).

On March 22, IHH submitted a confidential and non-binding offer to acquire 100% of RSDH on a cash-free and debt-free basis. RSDH, an Asian joint venture equally owned by Australia’s Ramsay Health Care and Sime Darby Holdings Bhd, has agreed to a four-week exclusivity period to allow IHH to conduct due diligence and negotiate a purchase agreement.

Jeffri said if Sime Darby were to accept IHH's offer, the group would not proceed with its proposed initial public offer (IPO) for its healthcare unit.

"If we accepted the offer, we would not carry out the planned IPO," he said.

The group was previously reported to be seeking a US$300 million (RM1.25 billion) listing of its healthcare division on the Main Market of Bursa Malaysia.

In October 2020, Sime Darby said it was considering RSDH’s listing in 2021.

Last month, however, Jeffri said the IPO was put on hold and Sime Darby was looking at other options to expand its healthcare business.

Shares of Sime Darby closed down five sen or 1.97% at RM2.49 on Monday, giving it a market capitalisation of RM16.96 billion. The counter saw 13.31 million shares traded.

Source: TheEdge - 29 Mar 2022