ABC Learning Names Webb Interim Chief; Groves Departs (Update2)
By Robert Fenner
Sept. 30 (Bloomberg) -- ABC Learning Centres Ltd., the operator of about 1,200 child-care facilities in Australia and New Zealand, named Rowan Webb as interim chief executive officer after the immediate departure of Eddy Groves.
Webb, a former CEO of clothing retailer Colorado Group Ltd., will assume the ABC role Oct. 1 pending a search for a permanent replacement, Brisbane-based ABC Learning said in a statement today. Eddy and his wife Le Neve Groves also left the board, the company said, without citing a reason.
ABC Learning shares have plunged 90 percent this year as slumping earnings raised concerns about the company's ability to repay debt built up under Groves' tenure, when he used takeovers to triple the number of centers managed to 2,300 globally. The stock has been halted since Aug. 21 as it attempts to finalize the annual earnings report it was due to deliver last month.
``The board and senior management will work closely with Rowan to ensure an orderly transition,'' Chairman David Ryan said in the statement. ``Rowan has the right management and operational expertise to drive improvements in the performance of our core Australia and New Zealand business.''
ABC Learning sold a 60 percent stake in its U.S. operations to Morgan Stanley in April and last month Computershare Ltd. agreed to buy its U.K. vouchers business for 90 million pounds ($162 million).
Results Next Month
The Groves', once the third-largest investors in ABC Learning with a 7.8 percent stake, sold most of their 37 million shares this year as the slumping price prompted margin lenders to demand sales.
Results for the 12 months ended June 30 will be released next month.
``Upon receipt of the final report from our auditors, and the release of the 2008 results, ABC expects to resume normal trading on the Australian stock exchange,'' the company said today in a separate statement.
The company also agreed to pay for A$70 million ($56 million) for 123 Careers, which holds exclusive rights to supply childcare recruitment services to ABC Learning's centers. The purchase, to be funded from existing cash, will be completed Oct. 10.
``The acquisition will allow ABC to significantly reduce the annual costs of sourcing relief, agency and permanent staff and to gain access to a significant pool of potential employees,' it said.
To contact the reporter on this story: Robert Fenner in Melbourne [email protected]
Last Updated: September 30, 2008 01:46 EDT
By Robert Fenner
Sept. 30 (Bloomberg) -- ABC Learning Centres Ltd., the operator of about 1,200 child-care facilities in Australia and New Zealand, named Rowan Webb as interim chief executive officer after the immediate departure of Eddy Groves.
Webb, a former CEO of clothing retailer Colorado Group Ltd., will assume the ABC role Oct. 1 pending a search for a permanent replacement, Brisbane-based ABC Learning said in a statement today. Eddy and his wife Le Neve Groves also left the board, the company said, without citing a reason.
ABC Learning shares have plunged 90 percent this year as slumping earnings raised concerns about the company's ability to repay debt built up under Groves' tenure, when he used takeovers to triple the number of centers managed to 2,300 globally. The stock has been halted since Aug. 21 as it attempts to finalize the annual earnings report it was due to deliver last month.
``The board and senior management will work closely with Rowan to ensure an orderly transition,'' Chairman David Ryan said in the statement. ``Rowan has the right management and operational expertise to drive improvements in the performance of our core Australia and New Zealand business.''
ABC Learning sold a 60 percent stake in its U.S. operations to Morgan Stanley in April and last month Computershare Ltd. agreed to buy its U.K. vouchers business for 90 million pounds ($162 million).
Results Next Month
The Groves', once the third-largest investors in ABC Learning with a 7.8 percent stake, sold most of their 37 million shares this year as the slumping price prompted margin lenders to demand sales.
Results for the 12 months ended June 30 will be released next month.
``Upon receipt of the final report from our auditors, and the release of the 2008 results, ABC expects to resume normal trading on the Australian stock exchange,'' the company said today in a separate statement.
The company also agreed to pay for A$70 million ($56 million) for 123 Careers, which holds exclusive rights to supply childcare recruitment services to ABC Learning's centers. The purchase, to be funded from existing cash, will be completed Oct. 10.
``The acquisition will allow ABC to significantly reduce the annual costs of sourcing relief, agency and permanent staff and to gain access to a significant pool of potential employees,' it said.
To contact the reporter on this story: Robert Fenner in Melbourne [email protected]
Last Updated: September 30, 2008 01:46 EDT
