Friday 01 Dec 2023
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KUALA LUMPUR (March 29): Diversified conglomerate Sime Darby Bhd reiterated that it has not made a decision to divest its joint venture (JV) with Australia’s Ramsay Health Care Ltd.

“However, Sime Darby continuously evaluates corporate opportunities to enhance value for its shareholders,” the group said in a filing on Wednesday (March 29), adding that it will make necessary announcements when there is a definite corporate proposal.

Sime Darby’s filing was in response to a Reuters article which said the JV partners plan to revive the sale of Ramsay Sime Darby Health Care Sdn Bhd.

Citing sources, Reuters reported that the companies are in talks with financial advisors to explore a sale of the JV to strategic investors in a deal that could value the business at some RM6 billion.

The report said deliberations were ongoing and no decisions have yet been made on the sale.

For the second quarter ended Dec 31, 2022, Sime Darby’s net profit rose 12.75% to RM389 million from RM345 million a year earlier, on the back of the RM147 million one-off gain booked from the disposal of Weifang Port, while revenue increased 7.62% to RM11.29 billion from RM10.49 million.

The group’s healthcare segment — which solely consists of Ramsay Sime Darby Health Care — remains a minor contributor, posting a profit before interest and tax (PBIT) of RM16 million, 45.45% higher than RM11 million last year.

Sime Darby’s core industrial division posted a 5.16% rise in PBIT to RM224 million from RM213 million a year earlier, while the motors division logged a 46.83% drop in PBIT to RM151 million versus RM284 million previously.

Shares in Sime Darby closed five sen or 2.33% higher at RM2.20, giving the group a market capitalisation of RM14.99 billion.

Edited ByS Kanagaraju
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