Ramsay Health Care, Australia’s biggest private hospital operator, and Sime Darby, one of Malaysia’s oldest conglomerates, have kicked off the sale of their hospital unit and are seeking a valuation of as much as US$1.5 billion, people with knowledge of the matter said.

The sellers have invited some healthcare companies and private equity firms to submit non-binding bids for Ramsay Sime Darby Health Care by the end of August, the people said. The revival comes nearly a year after discussions with Kuala Lumpur-listed IHH Healthcare collapsed. The parties couldn’t reach a binding agreement for the sale of the hospital unit, according to a statement in September.

Ramsay Health and Sime Darby are keen to divest the hospital unit as Malaysia is weighing a capital gains tax on the disposal of unlisted shares by companies, the people said. Prime Minister Anwar Ibrahim in February said the government will study the introduction of such taxation from next year.

Ramsay Health in late June said it and Sime Darby are again exploring a sale of the joint venture. 

Deliberations are ongoing and no final decisions have been made, the people said. A representative for Sime Darby said in response to a Bloomberg News query that it would be premature to comment on specific details of the sale. A spokesperson for Ramsay Health declined to comment. 

Founded in 2013, Ramsay Sime Darby Health Care was set up to hold Sime Darby and Ramsay Health’s combined portfolio of hospitals in South-east Asia. The Australian and Malaysian owners hold equal stakes in the venture.

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Ramsay Sime Darby Health Care owns four hospitals in Malaysia and three in Indonesia, according to the company’s website. It provides inpatient and outpatient services from primary care to surgery, as well as mental health care and rehabilitation. BLOOMBERG