Medibank Private secures binding deal to lift Myhealth stake

Medibank Private is set to become the controlling shareholder in GP clinics chain Myhealth after months of negotiations, Street Talk can reveal.

The listed health insurer has signed a binding agreement to go from owning about 33.3 per cent of MyHealth to 66.66 per cent. The rest would be owned by MyHealth’s doctors. The deal is expected to settle in the coming weeks.

It values Myhealth, which has more than 100 clinics across the country, at about $260 million on an enterprise valuation basis. Sources said Myhealth founder James Liang had exited, apart from a small parcel of shares. He would no longer be involved in day-to-day management but would be available to provide ad-hoc advice to the business.

Medibank had its chief financial officer, Mark Rogers, and chief strategy officer, Yash Sodhi, leading the talks, while Myhealth’s founders tapped LoftusLane Capital to negotiate the deal on their behalf.

Sources said the deal would lead to a generational change among Myhealth’s doctor shareholders. Liang and other early doctor investors have cleared the way for local doctors to add ownership in the Myhealth topco, alongside Medibank, in addition to owning their practices.