Senator the Hon Mathias Cormann

The Government continues to progress the sale of Medibank Private in an orderly and methodical fashion with firms now invited to tender to provide selling services.

Selling services providers will be appointed to act as Co-Lead Managers and Co-Managers for the Medibank Private initial public offering and will be responsible for marketing Medibank shares to retail investors.

The structure of the selling services appointments will be designed 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 progressing the sale of Medibank Private through an initial public offering in the 2014-15 financial year.

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