ABS a.b.c. learning centres limited

outside chance of management buyout..

  1. 945 Posts.
    in trading halt, has interest in part of business
    Last Price: $ 2.15 Change (+/) +$0.000 Change (%) +0.00%
    ABC Learning Centres went into a trading halt this morning, later announcing that it has received indications of interest in part of its business.

    We don’t see any natural bidders in Australia, and the interest has most likely come from private equity giant Bain Capital, which bought out US childcare group Bright Horizons last month.

    Bain will most likely want to get its hands on ABS’s US operations, which make up around 43% of ABS’ centres. As an outside chance, ABS could announce a management buyout.

    ABS said the discussions could take longer than the two days allowed under a trading halt, and may have to request a voluntary suspension if the talks proceed.

    In other ABS news, ABS directors have sold out millions of shares in the company. As we mentioned yesterday, the fire sale is likely to have been forced by margin lenders. Director David Ryan sold almost a quarter million shares on market yesterday, while Eddy Groves and his wife sold out 19 million shares between them. Only Martin Kemp sold out before the crash, selling 2 million shares on Friday.

    ABS also revealed that its directors still hold almost 22 million shares in the company and that almost all of these are covered by margin lending agreements.

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