IHH Healthcare Berhad has confirmed that it has submitted a confidential, conditional, non-binding, indicative proposal to Ramsay and Sime Darby Holdings Berhad (SDH), where it will acquire 100% of Ramsay Sime Darby Health Care Sdn Bhd.
Ramsay Sime Darby Health Care Sdn Bhd is the 50:50 Asian joint venture company of both Ramsay and SDH.
Under the indicative proposal, the conditional indicative enterprise value for Ramsay Sime Darby is at 5.67 billion ringgit ($1.83 billion) or US$1.35 billion on a cash-free, debt-free basis.
The proposal is subject to conditions for the completion of satisfactory due diligence; the negotiation and finalisation of a sale and purchase agreement; and the completion of any conditions precedent, including receipt of any regulatory approvals.
According to a statement released by IHH, Ramsay and SDH have agreed to a period of exclusivity to allow IHH to conduct due its diligence and negotiate a sale and purchase agreement (SPA).
“The discussions between IHH, Ramsay, and SDH are preliminary and no agreement has been reached in relation to the indicative proposal. There is no guarantee that an agreement will be reached in respect of the indicative proposal or that a transaction will eventuate,” reads the statement.
See also: IHH's net earnings more than doubles in 2021 on higher revenue, lower finance cost
As at 10.54am, shares in IHH are trading 2 cents higher or 0.96% up at $2.11.
