With the recent change in Medibank. Medibank are allowing Policyholders to reserve a Prospectus. What are OzB thoughts on this? Will you be buying? And what does pre-registering actually guarantee you over others?
Medibank Shares for Policy Holders
revo on 30/09/2014 - 19:28
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reason?
If you look at past government IPOs… The media/government has generally tried to inflate the importance of the IPO. You end up overpaying for the assets.
The commonwealth is going to try and maximise the price they can get for medibank.
I resisted and have researched the MBP IPO & here is my 2c worth.
- you may or may not make a profit, you have to determine the risk reward but it will be a BLUE CHIP health stock and the MBF/BUPA merger is profitable http://www.bupa.com.au/about-us
- we won't know until after the sale if MBP will be sold to a for profit, not not for profit & this is important! The gov setup MBP for $85 million and have taken out 1.5b in profits & the fund has a HUGE amount of pooled fund excess thats NOT being returned to fund members (its was part of the HOWARD legislation changes make MBP for profit) but the money belongs to members!
- no discount or fund reimbursement has been promised back to members unlike other health insurer sales, this means more value in the SALE for the GOV of course but after SALE they have to deal with the members funds and how (we) are treated. Under current legislation this is deferred until after the SALE, before the rules say NO MONEY CAN BE RETURNED TO MEMBERS but after is a blank slate..
- after the sale i BET that the lawyers will get involved in a class action to agitate for return of some, any or even all of members ecess funds but this will depend on who buys the company and what they offer (NFP, FP) and the offer to members.
It won't be a bump free ride if you buy, members may get more value back initially than share owners FYI depending on who owns or buys as mentioned. Hold on and it will make money and even something unthinkable as EBOLA will effect the price and even the future profitability, either way too… Lots of fat ozzies wanting lap banding too and thats only growing (joke)
Im a AHM member and its owned by MBP, i was hoping to get some value back as my family did with BUPA/MBF merger/buyout but alas only the GOV is going to make $ in the first instance, alas and YES i am THINKING of considering the offer when its released on its merits and after consulting a LAWYER on getting a CLASS ACTION started to protect my (OUR) interests in this float.
You guys checked the prospectus yet? What you think?
I don't think it is worth buying at this stage.
I wouldn't bother