Revelations of extensive iSelect links to new insurer
iSelect non-executive director Leslie Webb has owned up to 46 per cent of health.com.au's parent company, Australian Securities and Investments Commission documents show, and now owns almost 7 per cent.
Other investors in health. com.au's parent company, NIA, include ballet star turned stockbroker Li Cunxin, recently departed Brisbane Lions AFL chairman Angus Johnson, and Spotlight founder Morry Fraid.
Prominent criminal lawyer Robert Richter, QC, magistrate Charlie Rozencwajg, former iSelect employee Giles Hunt and a group of stockbrokers from Evans & Partners are also investors.
NIA spokesman Frank Peppard, who also owns shares in the company, said the shareholdings were "broadly accurate".
He confirmed NIA was "preparing a number of options to finance health.com.au's future growth, including a potential IPO [initial public offering] and/or other sources of funding."
NIA has a $75 million debt facility with iSelect, allowing the insurer to defer paying fees for sales through iSelect until at least July next year.
iSelect, which listed on the sharemarket in the middle of this year, has been criticised for failing to disclose the family links between health.com.au founder Andy Sheats and Matt McCann, its recently departed chief, as well as not disclosing Mr Webb had a shareholding in NIA.
The extent of Mr Webb's stake - 46 per cent in May 2011, falling to 22 per cent in November that year - was uncovered in extensive ASIC searches. Mr Webb was the only iSelect director allowed to sell shares held in escrow into the company's listing.
The company was unable to respond on Tuesday to questions about why Mr Webb's stake was not revealed and what was done about his potential conflict of interest.
Health.com.au launched last year with an aggressive offer and aspirations of being a top 10 insurer. NIA has raised $53 million since June 2011, and will need to raise more money to pay down its debt facility with iSelect.
Frequently Asked Questions about this Article…
iSelect has close links with health.com.au, as evidenced by the significant shareholding of iSelect's non-executive director Leslie Webb in health.com.au's parent company, NIA. Additionally, iSelect has a $75 million debt facility with NIA, allowing deferred payment of fees for sales through iSelect.
Notable investors in NIA include ballet star turned stockbroker Li Cunxin, former Brisbane Lions AFL chairman Angus Johnson, and Spotlight founder Morry Fraid. Other investors include prominent criminal lawyer Robert Richter, QC, magistrate Charlie Rozencwajg, and a group of stockbrokers from Evans & Partners.
NIA, the parent company of health.com.au, is preparing several options to finance the insurer's future growth. These options include a potential initial public offering (IPO) and other sources of funding.
iSelect has faced criticism for failing to disclose family links between health.com.au founder Andy Sheats and its recently departed chief, Matt McCann. Additionally, iSelect did not disclose Leslie Webb's significant shareholding in NIA, which raised concerns about potential conflicts of interest.
Leslie Webb, an iSelect non-executive director, owned up to 46% of health.com.au's parent company, NIA, at one point. His stake was later reduced to 22% and then to almost 7%. Webb was also the only iSelect director allowed to sell shares held in escrow during the company's listing.
NIA has a $75 million debt facility with iSelect, which requires them to raise more money to pay down this debt. Since June 2011, NIA has raised $53 million but will need additional funds to manage its financial obligations.
Health.com.au launched with an aggressive offer and aims to become a top 10 insurer in Australia. The company is focused on expanding its market presence and achieving significant growth in the health insurance sector.
Leslie Webb's shareholding in NIA started at 46% in May 2011, decreased to 22% in November of the same year, and is now almost 7%. This change in shareholding was uncovered through extensive ASIC searches.
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