AFK Sistema plans sale of Medsi Group

Newspaper reports in Russia confirm long-standing market rumour that conglomerate AFK Sistema intends to sell up to 20% of JSC Medsi Group, its a vertically integrated chain of healthcare facilities.

Local business daily Vedomosti reports that there has been interest already from China Japan and the Gulf.

Significantly the group is already in talks with national sovereign wealth fund the Russian Direct Investment Fund which may take a minority stake.

The newspaper says that a sale could fetch around US$670 million and is linked to AFK Sistema’s plans to float Medsi in the not-too-distant future.

Medsi is performing well. For the first nine months of last year revenues rose almost 50% to Rub12.2 billion (US$190 million).

Its facilities include 25 clinics in Moscow and the Moscow region (including two paediatric clinics, two clinical hospitals and three clinical-diagnostic centres), 12 clinics in the Russian regions, an ambulance service, an in-home care service, a medical wellness division and two sanatoriums.

Discussions are at a very early stage.