The government has given the green light for Medibank Private to be put up for public sale next financial year.
Although Finance Minister Mathias Cormann would not put any value on the company, it has been widely estimated to be worth around $4 billion. The sale would involve an initial public offering and be subject to market conditions.
Announcing the decision, Cormann said that an independently prepared scoping study had reaffirmed the Coalition’s long-held view that there was “no compelling reason” for the government to continue to own the health insurer.
“Medibank Private is a commercial business operating in a well functioning, well regulated, competitive private health insurance market with 34 competing funds,” he said. There was no market failure.