Nafinsa to Exit in Medica Sur Follow-On

Mexican hospital operator Medica Sur is planning a follow-on equity offering to raise funds for expansion and to allow government development bank Nacional Financiera (Nafinsa) to unload its 21% stake. The issuer does not give the size of the transaction’s primary portion, but says that Nafinsa will sell all of its 25.1m shares in a secondary portion, according to a prospectus. Nafinsa’s portion would be worth MXP638m at Wednesday’s MXP25.42 closing price, though the shares are extremely illiquid. Nafinsa has been a stakeholder since 1994, investing in order to help develop medical services, and has always planned on an eventual exit. Medica Sur plans to use proceeds from the primary sale to help fund its investment plan, most of which is dedicated to the expansion and refurbishment of its Tlalpan facility in Mexico City. Founded in 1982, Medica Sur operates hospitals and clinics and provides other health services including diagnostics, research and imaging in Mexico City, Monterrey, Cuernavaca and the state of Mexico. Ixe and BBVA Bancomer are managing the sale. The prospectus does not indicate the timing.