Companies linked to comparison site Compare the Market have taken a 10% stake in listed rival iSelect following a share price decline.
iSelect says it understands IHA Group, which holds the stake, is related to Compare the Market and Auto & General Holdings. Auto & General is a South African company that owns a range of insurance-related brands in Australia, most notably Budget Direct.
“The board of iSelect has not been contacted by the IHA Group or its representatives at this time,” the online comparator said today. “iSelect will keep the market informed of any material developments.”
IHA Group holds 22.18 million shares, representing a 10.15% interest, a shareholding notice released to the Australian Securities Exchange shows. The group includes Innovation Holdings Australia, Jacamar Overseas, which is understood to be registered in the British Virgin Islands, and BHL Holdings, the statement says.
iSelect shares closed at 55 cents on Friday after slumping last month when the company issued a weak trading update. CEO Scott Wilson quit at the same time.