A statement from the childcare giant, whose shares nosedived in February after concerns about the extent of its debts, said the sale to Morgan Stanley would 'enable ABC to crystallise the value of its United States business' and reduce the company's debts.
ABC, which had become the largest childcare company in the world under chief executive Eddie Groves, is hoping to raise around £355m from the sale in the US. The proceeds are intended to help the company pay back £600m of debt by 30 June.
It was the massive scale of the company's indebtedness which prompted a sell-off of its shares, which plunged by 43 per cent in market value in 48 hours.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here
