MBF's plan to demutualise and list on the Australia Securities Exchange
Release date: 17 August 2007
MBF Australia Limited (‘MBF’) has announced its intention to demutualise and list on the Australian Securities Exchange (ASX) as it continues to pursue a business strategy of growth and diversification.
The announcement follows careful consideration by the MBF Board whose recommendation to proceed down this path was endorsed today by a meeting of the MBF Council.
MBF Chairman, John Conde, said the MBF Council’s endorsement was a significant step in a process that will give MBF policyholders the opportunity to vote on the proposal to demutualise.
"The Board believes that demutualising is in the best interests of policyholders, that it will maximise MBF's future growth potential and enhance its ability to compete in a rapidly changing environment," Mr Conde said.
“Our current structure has served us well but limits our ability to access capital and grow to achieve our full potential. It is gratifying to have received the support of our Council in taking this significant step.”
MBF Managing Director and Chief Executive Officer, Eric Dodd, welcomed the outcome of the MBF Council meeting.
“Demutualisation will allow our policyholders to become shareholders in their company and to share in the total value and financial strength of the company.”
Demutualisation will proceed by way of a court-approved scheme of arrangement. MBF members and policyholders will have the opportunity to vote on the scheme. Mr Dodd noted that the terms of MBF’s health insurance policies and benefits would be unaffected by the move to demutualise and list.
If the demutualisation of MBF is approved, eligible policyholders will be entitled to receive shares. Following demutualisation, it is intended that those shares would be listed on the ASX.
More information about the process of demutualisation, including details of those policyholders who will be eligible to receive shares and the basis on which shares are allocated, will be communicated to policyholders in the coming months. It is anticipated that any listing will occur in calendar year 2008.
About MBF:
MBF is Australia's largest, non-government private health insurer with almost 800,000 policyholders. MBF provides private health insurance throughout Australia and is the number one or two private health insurer in Queensland, NSW, Tasmania and the Northern Territory. In addition to its core private health insurance business MBF Group offers life and travel insurance as well as financial planning services through ClearView Retirement Solutions. In the year ended 30 June 2006, MBF Group reported a pre-tax profit of $187 million.
