iSelect has recommended shareholders to “vote in favour” of a takeover by Innovation Holdings Australia (IHA), saying the proposed acquisition “is in the best interests” of investors.

IHA and its associates already hold a 26% interest in iSelect, and is a subsidiary of IHA Group. IHA Group owns rival comparator Compare the Market and Auto & General, which primarily operates under the Budget Direct brand.

The two parties announced last week they have entered into a Scheme Implementation Agreement, proposing that IHA will acquire all of the shares in iSelect that it does not currently own at 30 cents per share.

IHA’s latest acquisition bid comes after it aborted moves to acquire iSelect in 2020, due in part to covid-related uncertainties.

iSelect says its board has “carefully” considered the scheme and concluded that it provides shareholders with an opportunity to “realise certainty of value” with respect to their shares in iSelect at a significant premium to market value.

“The iSelect Board unanimously recommends that iSelect shareholders vote in favour of the scheme,” iSelect said in a statement.

The statement says each director intends to vote all of the iSelect Shares “held or controlled by them in favour of the scheme, in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of the iSelect shareholders”.

The implementation of the scheme is subject to approval by the Australian Competition and Consumer Commission (ACCC). It is also subject to standard, customary conditions including shareholder and court approvals.

It is anticipated that the Scheme will complete between December and March next year, subject to satisfaction of conditions, including ACCC approval.