Childcare provider ABC Learning Centres on Friday made a cash offer of $1.50 per share for all of the outstanding equity in Hutchison’s Child Care Services Ltd.
Around 65 million ordinary shares are being targeted by ABC.
This off-market takeover offer, which is unanimously recommended by the Hutchison’s board in the absence of a superior proposal, values Hutchison’s at $96.2 million.
ABC Chairman Sallyanne Atkinson AO said the acquisition of Hutchison’s would allow ABC Learning to strengthen its brand while ensuring it maintains the highest standards of quality at its centres.
“ABC is committed to creating exciting and challenging early learning environments for children and raising the standards across Australia,” Atkinson said.
Following the acquisition of the Hutchison’s centres, ABC Learning will have around 20% of long day care centres nationally.
The Australian childcare industry now has around 10,000 childcare services across the nation including more than 5,000 long day care centres.
Hutchison’s 87 centres – 6,521 licensed places – represent less than 2% of Australia’s long day care centres.
ABC Learning chief executive Eddy Groves said Hutchison’s has excellent centres in strategic locations and its acquisition would allow ABC Learning to continue to grow without compromising quality.
“Following completion, Hutchison’s centres will have access to ABC Learning’s world class curriculum. Centre staff will also have more time to spend with the children in their care with many administrative tasks centralised through access to ABC Learning’s on-line systems,” Groves said.
“All centre staff will also benefit from proposed new multiple business agreements which include the provision of free uniforms, free training and performance bonuses.”
By Kathryn O’Meara
