iSelect (ASX:ISU) has appointed its commercial director Mr. Scott Wilson as Chief Executive Officer and also announced the receipt of a non-binding takeover proposal.
Mr. Alex Stevens, the preceding CEO resigned from the company to pursue other career opportunities after being with iSelect for the past 18 months. The Chairman of iSelect Mr. Chris Knoblanche commented on Alex Stevens resignation: “Alex will help to ensure there is a smooth transition of leadership to Scott. We thank Alex for the important role he has played in laying a number of foundations for iSelect and the completion of several strategic projects during his tenure.”
The new CEO Mr. Wilson joined iSelect in 2013 and was responsible for the company’s individual business units and product partner relationships. He has successfully established iSelect’s commercial department and commercial strategy and played a pivotal role in the strategic development of the company’s Energy business over the last 18 months.
Mr. Knoblanche said, “We are delighted that Scott has accepted the role to take iSelect to its next stage of development as Australia’s leading multi-channel comparison service.”
The board also announced that it has received a confidential, non-binding and conditional proposal from an international private equity firm to acquire all of iSelect shares through an arrangement. The company did not disclose the name of the other party.
The Board considers it beneficial for shareholders to review the proposal and proceed with negotiations. A preliminary level of due diligence information will be provided to the potential acquirer. The company has appointed Morgan Stanley and Goldman Sachs as the financial advisers for this proposal and Gilbert + Tobin as the legal adviser. This process is set to take several weeks for its completion. In case the proposal does not proceed, the board plans on implementing a range of capital management initiatives, including a share buy-back. The board has decided the buy-back initiation should only start after completing the due diligence and negotiations with the bidder.
iSelect reported successful financial results in August 2015, with 54% higher Net Profits After Tax. The stock is trading at $1.53 (as of 13 October ) and has a one year return of 12.5% and year to date return of 19.07% respectively.
Author: Simon Herrmann
Oct 13, 2015
Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.