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16 May 14
Medibank sale firmly on the horizon

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As announced by the Minister for Finance on 26 March, and now with the scoping study recently finalised, the sale of Medibank Private Limited (Medibank) is in motion.

Medibank is soon to hit the market by way of an initial public offering (IPO) with precise timing and structure yet to be determined. Goldman Sachs, Macquarie and Deutsche Bank, are to jointly manage the float.

Having played key roles in the sale of overseas health insurance providers, our McCullough Robertson experts are closely watching the progress of this deal.

The sale of Medibank Private represents one of the last significant privatisations available to the Australian Government and there will be close attention paid to the process and the ultimate price paid.  The UK has recently demonstrated, with the majority sale of the Royal Mail, that selling a significant public asset cheaply can create a political storm for the Government.  Domestic examples such asTelstra will similarly reinforce to the Government it is important to leave some upside for investors.  If well managed, the impact on the overall health insurance market is not likely to be as controversial as some commentators have suggested.’  Mr Swain Roberts, Special Counsel, McCullough Robertson said.

Mr Roberts is an experienced corporate lawyer with substantial international experience having been based in Singapore for 15 years. His experience advising across jurisdictions, countries and borders, gives him a unique insight into the needs of international business. This teamed with his experience in the listing of health providers, puts him firmly on the map for this type of transactional advice.

Partner, John Kettle is also an expert on the subject matter.  He joined McCullough Robertson in February 2013 following a successful career in top UK law firms.  John has acted on the buyer side of a major health insurer acquisition in Europe, giving him significant insight into the intricacies of the deal.  This is teamed with his strong understanding of the government sector, from advising on privatisation and state transactional matters.

For any advice or opinions in relation to this IPO, please contact our team.
 

Focus covers legal and technical issues in a general way.  It is not designed to express opinions on specific cases.  Focus is intended for information purposes only and should not be regarded as legal advice.  Further advice should be obtained before taking action on any issue dealt with in this publication.

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