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- iSelect has signed an agreement with Innovation Holdings Australia (IHA).
- iSelect's shares exploded 75% and were trading at AU$0.28 each at 12.27 PM AEST.
- IHA and its affiliates currently hold a 26% stake in iSelect.
Consumer services firm iSelect Limited (ASX:ISU) today (10 August 2022) announced that it has entered into a Scheme Implementation Agreement (SIA) with Innovation Holdings Australia (IHA).
On the back of the news, iSelect's shares exploded 75% and were trading at AU$0.28 each at 12.27 PM AEST.
Innovation Holdings Australia is an investment of Reef Investment Consortium (Reef). A group of private investors known as Reef focuses on strategic investments in the insurance and allied industries. Among their holdings are Compare the Market and Auto & General.
Reef invests in companies worldwide, with its major companies based in Australia, South Africa, and the United Kingdom. Since its establishment in South Africa in 1975, Reef has expanded its operations to Australia, where it employs more than 2,000 people.
iSelect's ordinary shares are now held by IHA and its affiliates to a 26.0% stake. It is planned that, under the SIA, IHA will acquire all the shares of iSelect that it does not already own through a scheme of arrangement.
In exchange for transferring their iSelect shares to IHA in accordance with the terms of the Scheme, shareholders of iSelect will receive cash consideration in the amount of AU$0.30 per iSelect share.
The deal is subject to certain circumstances, and the completion of the Scheme is planned to occur between December 2022 and March 2023.
The cash price per iSelect share of AU$0.30 reflects a premium of 87.5% to the closing price of AU$0.16 on 9 August 2022, a premium of 70.6% to the one-month volume weighted average price of AU$0.18, and a premium of 87.7% to the three-month volume weighted average price of AU$0.16.
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Data Source- Company announcement dated 10 August 2022
iSelect is committed to help Australians save their time, money, and effort by assisting them with their home bills. Its service is offered at no cost to the customer. The company is Australia's go-to location for comparing insurance, utility, and personal finance products made available from its suppliers.
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