Medibank Private float announced
Medibank Private has been advised by the Minister for Finance and Administration, Senator Nick Minchin, that the Government intends to privatise Medibank Private via a share market float.
"The Government's decision removes the uncertainty of how the company will be privatised and reflects the Government's confidence in Medibank Private," said Medibank Private, Managing Director, Mr George Savvides.
"Whilst the timing has been set for 2008 and is subject to the re-election of the current Government we are pleased that the uncertainty surrounding Medibank's future ownership has been removed.
As stated by the Government, the decision on timing is based on the fact that they do not feel it is practical to sell both Telstra and Medibank within months of each other.
"Medibank Private is a strong business built on delivering member value.
"Over recent years our financial performance has steadily improved and we have delivered more value back to members. We have cemented a solid foundation to build and deliver exciting plans for the future," Mr Savvides said.
If an IPO is realised Medibank Private will be the first Private Health Insurer to be listed on the Australian Stock Exchange enabling Medibank Private members, for the first time, to hold shares in the fund.
Mr Savvides went on to say, "We recognise the loyalty of our nearly three million members. We've worked hard to reward our fund members with value for money health cover and we will continue to do so.
"In fact, at the end of 2005 Medibank Private had achieved the strongest growth in membership of any health fund since the introduction of lifetime health cover in 2000 - our value offering is strong and will continue to improve.
"The business looks forward with confidence to the future, we will work to ensure the business continues to grow and co-operate to implement a successful initial public offering at the appropriate time," Mr Savvides said.
Contact: Libby Woolnough
PH: 03 8622 5181 / 0411 659 060
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