NIB Holdings Limited (nib) announced that it had withdrawn its proposal for GMHBA after failing to win support for its revised $180 million proposal from the Board of the Geelong-based mutual health fund.
nib Managing Director Mark Fitzgibbon said that nib believed strongly that a merger with GMHBA was in the interests of both nib and GMHBA and would help to reduce pressure on premium increases.
“We are extremely disappointed that GMHBA’s Board has seen fit to reject our proposal without putting the cash offer to a vote of its members and without advising them what they regard as fair value for their business,” Mr Fitzgibbon said.
“nib twice raised its offer for GMHBA and offered a significant number of guarantees about services, including maintaining branches and call centre operations as well as no change to GMHBA products,”
Ken Jarvis, GMHBA Chairman said;
“This is the third offer rejected in the past two months. At the end of September NIB offered $140m, said it was fair and the Board was wrong in rejecting it. Then they offered $161m in October. Now NIB say $180m is fair. It still isn’t.
As a valued member of our fund, I believe it is very important that you are properly informed as to why your Board has rejected these offers from NIB:
• None have reflected GMHBA’s full value
• They provided no meaningful improvement in products or service
• The culture of NIB is wrong for GMHBA members
• GMHBA is an industry success story with great prospects for further improving members’ interests
• There is no need to sell to realise our plans
• Our members tell us they want GMHBA to stay as we are