The Medibank share price has struggled in 2022. Could the company be a takeover target?

A private equity firm is reported to have made a play for Medibank’s healthcare services business.

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Key points

  • The Medibank share price has fallen nearly 4% year to date 
  • Media speculation has emerged that a private equity firm approached Medibank to acquire the company's healthcare services business 
  • The number of Medibank policyholders has increased 2.3% in the financial year to date

The Medibank Private Ltd (ASX: MPL) share price is in the red year to date, but what could be on the cards for its future?

The company’s share price has slid 3.88% this year and is trading at $3.22. For perspective, the S&P/ASX 200 Index (ASX: XJO) has also dropped 3.97% so far this year.

Let’s take a look at what is happening at Medibank.

Takeover target?

Rumours have emerged that Medibank Private has been confronted with a takeover offer. A private equity firm recently approached Medibank about buying its healthcare services business, The Australian reported.

However, the publication speculated the offer may have been rejected quickly due to the company’s plans to grow healthcare services.

In a May presentation at the Macquarie conference in Sydney, Medibank CEO David Koczkar highlighted the private health insurer is building on telehealth, primary care, short stay, and home care.

Medibank highlighted in the financial year to date, resident policyholders have increased by 2.3% or 42,900 as of 30 April 2022. In FY22, the company is hoping to achieve 3.1-3.3% policyholder growth overall.

The company said: “Targeted inorganic growth for Medibank Health and Health Insurance remain areas of focus.”

Medibank recently announced it will publish full-year results on 18 August. The company’s final dividend will be paid on 22 September.

Medibank share price snapshot

The Medibank share price has ascended by almost 4% in the past year, while it is up almost 1% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 2% in the past year.

Medibank has a a market capitalisation of about $8.9 billion based on today’s share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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