Senator the Hon. Mathias Cormann
Minister for Finance
Date: Monday, 20 October 2014
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
The prospectus for the Medibank Private Share Offer has been lodged with the Australian Securities and Investments Commission and is now available at medibankprivateshareoffer.com.au.
Australian retail investors will be able to apply for Medibank Private shares from Tuesday, 28 October 2014.
The indicative price range for Medibank Private shares has been set at $1.55 to $2.00 per share.1
A price cap for retail investors means that Australian residents who choose to apply for shares will not pay any more than $2.00 per share, even if the final price is set above the indicative range.2
At the indicative price range, the indicative market capitalisation of Medibank Private would be $4,269 – $5,508 million,3 which would place it among the top 100 companies on the ASX.
The Government intends to sell down its entire shareholding.
The launch of the offer follows a successful pre-registration process where more than 750,000 Australians pre-registered to receive the Medibank Private Share Offer prospectus. There was strong support from Medibank and ahm policy holders.
Australian residents who pre-registered their interest in receiving a prospectus and apply for shares in the General Public Offer can be allocated an amount of shares up to 15 per cent higher than General Public Offer applicants who did not pre-register.
Eligible4 Medibank Private and ahm policyholders who pre-registered and apply for shares in the Policyholder Offer can be allocated an amount of shares up to 30 per cent higher than General Public Offer applicants who did not pre-register.
Eligible4 Medibank Private and ahm policyholders who did not pre-register are still eligible to apply for shares in the Policyholder Offer and can still be allocated an amount of shares up to 15 per cent higher than General Public Offer applicants who did not pre-register.
Potential investors who have not pre-registered can get a prospectus by calling 1800 998 778 or visiting medibankprivateshareoffer.com.au.
The Government has long been committed to the sale of Medibank Private.
The lodgement of the prospectus is another important step in the Government's orderly and methodical approach to the sale.
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 sale of Medibank Private will provide the company with full commercial independence and access to capital markets.
The sale will also remove the current conflict where the Government is both the regulator of the private health insurance market and owner of the largest market participant.
Proceeds from the sale of Medibank Private will be re-invested into productivity enhancing infrastructure through the Government's Asset Recycling Initiative.
For key offer statistics and key offer dates refer to the Medibank Private Share Offer website.
Karen Wu – 0428 350 139
The Medibank Private Share Offer will be made by the Commonwealth of Australia. A copy of the prospectus in relation to the Medibank Private Share Offermay be obtained after it has been lodged with the ASIC. Anyone who wants to acquire shares in Medibank Private will need to carefully consider the prospectus and then complete an application form that will be in or will accompany the prospectus. Pre-registrants are not obliged to apply for shares. This document does not constitute an offer to sell, or a solicitation of an offer to buy securities in the United States. The shares referred to in this document have not been, and will not be, registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”) or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold in the United States absent registration under the U.S. Securities Act or an exemption from registration requirements.
 This is the indicative range for the Final Price. The Final Price may be set below, within or above the indicative price range (see Section 7 of the prospectus for more information). Shares may trade below the lower end of the indicative price range.
 The Retail Price will only apply to the first $250,000 worth of shares (rounded down to the nearest share) allocated to applicants under the Retail Offer. If applicants are allocated shares above $250,000, they will pay the Final Price for those shares.
 The market capitalisation is calculated as the indicative price range multiplied by the total number of shares on issue immediately following completion of the offer. If shares trade below the lower end of the indicative price range after listing, the market capitalisation may be lower.
 Persons covered under PHI policies, issued under either the Medibank or ahm brands on the Record Date, who are permanent residents of Australia, are over the age of 18 and are not in the United States or acting on behalf of a person in the United States. The Policyholder Offer will only be open for one application for each such policy.