Senator the Hon Mathias Cormann

The Government has taken the next step in progressing the sale of Medibank Private in an orderly and methodical fashion, by appointing three Joint Lead Managers for the sale.

This brings us another step closer to the opportunity to recycle the proceeds from the sale of Medibank Private, by investing them into nationally significant productivity enhancing infrastructure.

After a thorough and competitive tender process with eleven bids received, the Government is pleased to announce the appointment of Deutsche Bank AG, Goldman Sachs Australia Pty Ltd and Macquarie Capital (Australia) Limited as Joint Lead Managers for the sale of Medibank Private.

Each of the Joint Lead Managers brings a substantial mix of experience in Australian and global capital markets, privatisations, equity offers and the ability to project manage large capital market transactions.

Deutsche Bank AG, Goldman Sachs Australia Pty Ltd and Macquarie Capital (Australia) Limited will have responsibility for the project management and co-ordination of the initial public offering, including both retail and institutional management and selling services.

The Government has reserved the right to make additional Joint Lead Manager appointments if required.
 
Other firms will also be appointed closer to the sale to supplement the selling syndicate, with a focus on retail selling roles.

The Government has also exercised the option to extend the contracts for the Medibank Private scoping study advisers through the sale phase in accordance with the terms of their original appointments.

These advisers are Lazard Pty Ltd as Business Adviser, Herbert Smith Freehills as Legal Adviser, Ernst and Young as Accounting Adviser, Newgate Communications as Communications Adviser and the Australian Government Solicitor as Process/Probity Adviser.

The Joint Lead Managers and these advisers will now work to ensure that the Government’s objectives with regard to the sale of Medibank Private are achieved.

These objectives 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 proceeds from the sale.

Subject to market conditions, the Government is committed to progress the sale of Medibank Private through an initial public offering in the 2014-15 financial year.

The precise timing and structure of the Medibank Private initial public offering is yet to be determined.