Senator the Hon. Mathias Cormann
Minister for Finance
Date: Friday, 29 August 2014
Subject to market conditions, the Government has decided to proceed with the sale of Medibank Private through an Initial Public Offering in 2014.
The Government is satisfied that this timing best meets our objectives for a sale, which are:
- to contribute to an efficient, competitive and viable private health insurance industry;
- to maintain service and quality levels for Medibank Private customers, including in regional and rural Australia;
- to ensure the sale process treats Medibank Private employees in a fair manner, including through the preservation of accrued entitlements;
- to minimise any post sale residual risk and liabilities to the Government; and
- having regard to the above objectives, to maximise the net sale proceeds from the sale.
It is the Government’s intention to offer shares to retail investors and domestic and international institutions.
All Australians will be given the opportunity to pre-register for a Medibank Private Share Offer prospectus towards the end of September 2014.
Details of the offer structure will be provided in that Medibank Private Share Offer prospectus.
The Government expects to lodge the Medibank Private Share Offer prospectus with the Australian Securities and Investments Commission in late October.
Interested participants will then be able to apply for shares directly or through their broker.
Medibank Private is expected to list on the Australian Stock Exchange in December 2014.
The Coalition has long been committed to the sale of Medibank Private.
Medibank Private is a commercial business operating in a well functioning and competitive private health insurance market with 34 competing funds.
As such there is no compelling policy reason for the Government to continue to own Medibank Private.
The privatisation of Medibank Private will also remove the current conflict where the Government is both the regulator of the private health insurance market as well as a large market participant in a competitive market.
Proceeds from the sale of Medibank Private will be re-invested into productivity enhancing infrastructure through the Government’s Asset Recycling Initiative.
Karen Wu 0428 350 139