MBF takes another step towards demutualisation and listing on Australian Securities Exchange
Release date: 9 November 2007
MBF Australia Limited ('MBF') has moved a step closer to its proposed demutualisation and listing on the Australian Securities Exchange (ASX) and has announced the cut off date for participation in the proposed share allocation.
At the Annual General Meeting held in Sydney today, the MBF Council approved amendments to MBF's constitution that will enable the demutualisation process to proceed to a vote of contributors.
MBF also announced 8 November 2007 as the cut off date for participation in the proposed share allocation as part of the demutualisation proposal. If MBF's demutualisation proposal is implemented, contributors holding fully paid up health insurance policies with MBF as at 8 November 2007 will be allocated shares.
MBF contributors whose policies were in arrears on 8 November 2007 will have until 12 January 2008 to pay the amounts in arrears so that they can participate in the share allocation.
The number of shares a contributor will be allocated if the proposal is implemented will be based upon the type and membership scale of each contributor's health insurance policy as well as their tenure.
MBF Chairman, Mr John Conde, said Council's approval of the constitutional amendments allows the Board to propose the structural changes. If approved by contributors, the changes will enable MBF to continue to compete and grow nationally in an industry undergoing substantial change.
"We believe the decision to demutualise and list is in the best interests of MBF and its 800,000 contributors," Mr Conde said.
"It represents the best option for our company and will enable us to grow and become a national private health insurer able to continue to deliver enhanced insurance products and services for our contributors.
"MBF has a proud heritage of providing peace of mind to generations of contributors and their families by assisting with their health insurance expenses.
"Our focus on looking after contributors' health needs and wider lifestyle protection needs will only become stronger in a listed environment."
MBF Managing Director and Chief Executive Officer, Mr Eric Dodd, said demutualisation and listing would allow MBF contributors to share in the total value of the company
Mr Dodd said that over the past five years, MBF had achieved an effective balance in building the company's financial strength while increasing support for contributors.
"Demutualisation will ensure that MBF is in a stronger position to participate in the change taking place in the industry," Mr Dodd said.
A detailed Information Memorandum on the proposed demutualisation is scheduled to be available before the end of the year.
The Information Memorandum will provide contributors with instructions on how to vote on the proposal and details of the number of shares they will be allocated if the proposal is implemented.
It is expected that a meeting to consider the proposal will be held in early February 2008.
About MBF:
MBF is Australia's largest, non-government private health insurer with more than 800,000 contributors. MBF provides private health insurance throughout Australia and is the number one or number two private health insurer in Queensland, New South Wales, Tasmania and the Northern Territory. In addition to its core private health insurance business, the MBF group of companies offer life and travel insurance as well as financial planning services through ClearView Retirement Solutions. In the year ended 30 June 2007 MBF posted a 23.5 % rise in consolidated net profit after tax to $223.5 million.
