Investors can now pre-register for shares in Australia’s biggest health insurer, Medibank Private.
Finance Minister Mathias Cormann announced the Federal Government would soon begin a national advertising campaign to promote the pre-registration process of the share offer which could generate up to $4 billion.
He said those who pre-register can be allocated more shares than those who do not; while eligible policy holders who pre-register and apply for shares will receive a greater preferential share location.
“It’s been long standing Coalition policy to sell Medibank Private. There is absolutely no good reason for the Federal Government to own a private health insurance business today,” Senator Cormann said.
“Medibank Private is a commercial business operating in a well-functioning, well-regulated market with 34 private health funds.”
He said the Government was removing the current conflict of being a regulator and the largest market participant.
The Government’s objective was to sell 100 per cent of the company with money to be used for infrastructure projects.
He said subject to market conditions the prospectus was expected to be available in late October.
“Importantly, pre-registration is not a commitment to buy shares,” he said.
“Medibank Private is Australia’s largest private health insurer. It is a very well known business which has been providing private health cover for almost 40 years.
“It provides cover for over 3.8 million people across Australia through its two brands, Medibank and AHM,” he said.
Pre-registration closes Wednesday, October 15.
Medibank Private is expected to be listed on the Australian Stock Exchange in December.