Last week ABC, the world's largest childcare provider, said it wasconsidering selling its UK nurseries alongside the childcare vouchercompany and property assets.
The voucher business was put up for sale earlier this year as part of amove to rescue the debt-ridden company after it plunged into a sharescrisis, which saw A$755m (360m) wiped off its value in oneday (News and Analysis, 6 March, News 13 March).
In a statement, ABC said, 'The company has previously advised it wasconsidering selling its property assets in the UK. In addition, thecompany is now considering selling the UK nurseries business and the UKproperty assets in a single transaction.
'A number of highly conditional indicative proposals for the entire UKbusiness have been received. A sales process has commenced anddiscussions are continuing with interested parties.'
Meanwhile, the founder of ABC, Eddy Groves, has struck a deal with theboard to buy back some of his shares in the company, in exchange for hisA$1.6m (Australian) salary.
Mr Groves and his wife Le Neve Groves were forced to sell most of theirstake in the business they started when the share price plummeted to alow of A$1.15 in February.
They sold 12,165,301 ordinary shares and retained just 3,186.
Under the new arrangement, Mr Groves has exchanged his entire salary for6,956,522 shares and Le Neve will take half of her A$600,000salary in shares.
The deal will mean that the couple have bought back 1.5 per cent of thecompany and will make a profit if the share price exceeds A$1.15.
Busy Bees managing director John Woodward would not comment directly onwhether or not Busy Bees would be putting in an offer to buy back the UKnurseries and voucher business.
He told Nursery World, 'It's not surprising that people are speculating.The current management team are interested in remaining associated withBusy Bees for a long time. We all intend to stay.'
Commenting on ABC's decision to sell the UK business, he said, 'I thinkthey've taken a prudent view on what they should do.'
He said Busy Bees was still in the market to buy other nurseries andthat the voucher business was continuing to expand, adding, 'There is areal strong urge for the current management team to continue.'