Senator the Hon. Mathias Cormann
Minister for Finance
Date: Sunday, 26 October 2014
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Australian retail investors will be able to apply to buy shares in Medibank Private from tomorrow when the retail component of the Medibank Private Share Offer opens.
The Retail Offer will run from Tuesday, 28 October through to Friday, 14 November 2014, giving retail investors two and a half weeks to apply to buy shares.
The indicative price range for Medibank Private shares has been set at $1.55 to $2.00 per share1.
Retail investors will not pay more than $2.00 per share, even if the final price paid by institutional investors is higher2.
The final price per share will be determined following an institutional bookbuild process, which allows the final price per share to be set based on the market’s view of fair value.
Retail investors are required to apply for a dollar amount of shares.
In the event the offer is oversubscribed, applications may be scaled back. Refunds will be paid to applicants who apply and pay for more shares than they are allocated.
Retail Offer applications can be made in three ways:
- Apply and pay online at medibankprivateshareoffer.com.au;
- Apply by post using the paper application form and reply paid envelope in the prospectus; or
- Apply through your broker.
Australian residents who pre-registered their interest in receiving a prospectus and now 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.
Eligible3 Medibank Private and ahm policyholders who pre-registered and now 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.
Eligible3 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 Retail Offer includes the Broker Firm Offer, General Public Offer, Policyholder Offer and the Employee Offer.
Retail investors should carefully consider the prospectus before deciding whether or not to apply for shares.
The Broker Firm Offer bids are due this Wednesday, 29 October 2014. The Government will provide an update on Broker Firm following the close of the Broker Firm Offer.
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.
Karen Wu – 0428 350 139
The Offer by the Commonwealth of Australia is only made through the prospectus which you should consider in deciding whether to apply for shares. To apply, you need to complete the application form in or with the prospectus. The prospectus may be obtained by visiting medibankprivateshareoffer.com.au or calling 1800 998 778. This document does not constitute an offer to sell, or a solicitation of an offer to buy securities in the United States or any other jurisdiction. The shares referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or 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. Unless the context requires otherwise, terms adopt the meaning given in the prospectus.
 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.
 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.