Mayne and Kalbe tie up

Mayne and Kalbe tie up

SYDNEY (Reuter): Transport and health care group Mayne Nickless Ltd said yesterday its Health Care of Australia unit had signed a joint venture agreement with Indonesia's PT Kalbe Farma Group.

"Health Care of Australia will have a 40 percent share (A$25 million) in the joint venture which will undertake the development of two new private hospitals in Jakarta and manage a third existing hospital in Jakarta," Mayne said.

The joint venture would involve pathology services.

Mayne said it was already involved in an 85 percent joint venture to develop a new hospital in Surabaya in eastern Indonesia.

The announcement of the joint venture was part of a review of Mayne's operations after its decision to sell its 25 percent stake in Optus Communications, Australia's second largest telecommunications group.

Mayne said that it would spend about two thirds of the funds raised from the Optus sale in the health care industry and was looking at possible acquisitions in France, Canada and Australia.

Analysts have said the sale of the Optus stake could reap up to A$1 billion.

Mayne shares closed six cents firmer at A$7.55 in an overall softer market.