Worrying signs for SA listing

London/Johannesburg - Investment banks are preparing Life Healthcare, one of South Africa's biggest private-hospital operators, for a public listing later this year, people familiar with the matter said.

Credit Suisse and Morgan Stanley are working on a listing, the people said. South Africa's Nedbank is also working on the deal, one of the people added.

The step towards an initial public offering (IPO) comes as private investors prepare to sell or list a string of medical technology and healthcare services companies, including Ambea in Sweden, BSN Medical in Germany, and General Healthcare Group (GHG) in Britain.

But there are some signs public markets may prove less welcoming than hoped: earlier on Monday BC Partners cut the price on the IPO of its French care homes group Medica, blaming a deterioration in market conditions.

Life Healthcare and Mvela were not immediately available to comment. Brimstone, Credit Suisse and Morgan Stanley declined to comment.

- Reuters