Ramsay have now sold their Sime Darby Joint Venture.

We wrote about this back at the RHC August result, and so it is pleasing to see the company hit a milestone. The market had become very worried about Ramsay’s balance sheet, and this will permit Ramsay to degear materially. That’s good!

It is also pleasing in that overseas expansions have been a shocker, for nearly every company on the ASX, Ramsay, alas, included. The Australian business is a good one, and Ramsay will almost certainly use the SD Joint Venture proceeds to bid for Cura, the Australian hospital business (a much smaller, almost bolt on type acquisition).

So, less debt, and more Australia (where the network efficiencies are greater; stronger links to doctors, a better brand, a stronger understanding of the legal and regulatory requirements, better buying power, more ability to allocate resources within the hospital footprint) is, we think, a very good thing.

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