Malaysia’s Sime Darby Bhd. 4197.KU -0.11%and Australia’s Ramsay Health Care Ltd. RHC.AU -2.13%are in talks to form a joint venture that combines several hospitals in southeast Asia, The Wall Street Journal reported Wednesday.
“A joint venture is better than going by themselves, because sovereign risk in that region is higher than countries like France and the U.K.,” Derek Jellinek, a Sydney-based analyst CIMB Group Holdings Bhd. 1023.KU -0.97%, told Deal Journal Australia.
News Limited Ramsay Health Care’s chairman and largest shareholder Paul Ramsay (L), pictured with Oscar-winning actor Kevin Spacey Based on Ramsay’s track record of offshore expansion, CIMB believes investors will support the mooted joint venture.
“The company has shown an ability to allocate capital in a rational and conservative way, with a very high success rate,” Pengana Capital senior fund manager Rhett Kessler said. Pengana Capital is a former shareholder of Ramsay, which was founded in 1964, and has been listed on the Australian Securities Exchange ASX.AU -0.26%since 1997.
Ramsay made its first offshore acquisition a decade later, acquiring U.K.-based hospital operator Capio for 193 million British pounds, which translated to around 450 million Australian dollars at the time (US$465 million).
RHC Price at posting:
$30.80 Sentiment: None Disclosure: Not Held
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