Ramsay Sime Darby to form JV in China

KUALA LUMPUR: Ramsay Sime Darby Health Care (RSDHC) has signed a conditional contract to form a joint venture with Chinese healthcare company Chengdu Jinxin Healthcare Investment Management Group Ltd (Jinxin). RSDHC is a partnership between Ramsay Health Care Ltd and Sime Darby Bhd while Jinxin is operating a number of hospitals and is developing a new hospital in the city of Chengdu, China. RSDHC would have an effective 50% stake in the joint venture and is expected to be the first international hospital operator to invest across a broad spectrum of specialty facilities in the Chinese hospital market, RSDHC said.

“The joint venture will initially involve four of the hospitals that Jinxin currently operates in Chengdu and, at a later stage, a 500-bed women’s health private hospital due to open later this year. “In total, it is contemplated that the joint venture will involve these five hospitals with about 2,300 beds and a focus on womens health, mental health and traditional Chinese medicine,” it said in a statement. Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh said the partnership with Jinxin was a good start for RSDHC as it sought to build a portfolio of quality hospitals across Asia. “Both partners – Ramsay and Sime Darby – have been keen to expand our hospital portfolio in Asia and this new deal with Jinxin, a reputable hospital operator, provides RSDHC with a foothold in a very attractive market and allows it to accelerate our growth plans in the region,” he said. The total cash consideration for RSDHC equity share of the joint venture will be about US$135mil (RM431mil). — Bernama

Sourced from:
The Star | Thursday, 21 May 2015