On Friday ABC issued a statement confirming that chief executive Eddy Groves had sold nearly his entire stake in the world's biggest childcare company. He has sold 12,165,301 ordinary shares and retains just 3,186.
His wife Le Neve Groves has sold all her shares. A month ago the couple owned 8 per cent of the business.
The plan to sell the UK voucher business is part of a strategy put together by ABC's directors to bail out the debt-ridden company, after it was plunged into a share crisis two weeks ago (News and Analysis, 6 March).
Last week ABC struck a deal with Morgan Stanley Private Equity for the sale of a 60 per cent interest in the US arm of the business. ABC will retain a 40 per cent share of the US childcare centres and run them as a joint venture with Morgan Stanley.
Commenting on ABC's decision to put the voucher business up for sale, Busy Bees managing director John Woodward said, 'The voucher business is the only business in ABC which is anything other than nurseries and pretty well works as a stand-alone. I'm not surprised at the sale because it will give them a good return. It's a growing opportunity and Busy Bees has the majority share of the market.'
He added, 'I would be surprised if ABC sold any of the nurseries in the UK as they are very successful.'
But he would not comment on speculation that Busy Bees' management team are planning to buy back the voucher business or to put in an offer for the nurseries.
Mr Groves met with directors and staff at a company meeting in Brisbane on Sunday and reassured them that ABC would survive.
He said, 'At the end of the day this is a very solid business. We've been here for 20 years - I think we'll be here for a lot longer than that, and really don't think there's too much link between the share price and the strength of the operating business.'
On Monday the ABC share price had recovered slightly to A$1.55.
