This article is from the Australian Property Journal archive
THE Australian Stock Exchange is examining ABC Learning Centre's disclosure, after it was revealed that the directors sold down their shareholding in the company prior to its poor profit result.
Yesterday, it was revealed four directors, including co-founders Eddy and Le Neve Groves, were forced to sell about $35 million worth of shares due to margin lending arrangements.
Groves, the chief executive, now holds 12.2 million shares and his wife Le Neve now holds 6 million shares.
And directors Martin Kemp and David Ryan also sold down their holdings. Kemp, the chief executive of ABC’s Australia and New Zealand division sold two million shares last Friday at $3.75 – prior the share price falling 41% to $2.14.
Meanwhile, ABC has been placed in a trading halt.
Groves said requested the trading halt as a result of indications of interest in relation to part of its business.
It remains unclear whether the company is now considering a fire sale of assets to sell down debt.
Meanwhile, the National Australia Bank and its nominees made a surprising move by becoming a substantial shareholder in ABC.
NAB and its subsidiaries MLC Investments Limited and Antares Managed Investment Limited, bought 26.41 million share giving them a voting power of 5.56%.
Australian Property Journal
