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April 8, 2008 |
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ABC LEARNING: Closer to Selling U.S. Assets, Report Says ABC Learning Centres Ltd. may finalize a deal with Morgan Stanley on the sale of its U.S. assets by the end of this year, a person familiar with the situation told Dow Jones Newswires, relates The Australian. Dow Jones quotes the source as saying, "They're hopeful of finalizing things in a matter of days rather than weeks." According to the report, Morgan Stanley's exclusive due diligence period expired two weeks ago but talks between the two parties continue. ABC, notes The Australian, signed an agreement with Morgan Stanley on March 5 to sell a 60% stake in its U.S. business to raise about AU$750 million to reduce debt. About ABC Learning A.B.C. Learning Centres Limited provides childcare services and education. The company operates in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include A.B.C. Developmental Learning Centres Pty Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, A.B.C. Developmental Learning Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. As reported by the Troubled Company Reporter-Asia Pacific, the company's Sydney trading on Feb. 26, 2008, plunged 43% after a slump in earnings raised concerns it may struggle to repay debt. The drop to AU$2.14 triggered margin calls on stakes held by some directors. Consequently, stock trading was halted as the company entered talks on "indications of interest" for parts of its business. More than 96% of the remaining 21.9 million ABC Learning shares owned by directors, equivalent to 4.6% of stock outstanding, are held in margin lending arrangements that may result in forced sales. |
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