http://www.news.com.au/couriermail/story/0,23739,23291213-5003402...

http://www.news.com.au/couriermail/story/0,23739,23291213-5003402,00.html

Temasek Holdings, one of the Singapore government's investment vehicles, has lifted its stake in troubled childcare provider ABC Learning Centres.

Temasek has lifted its stake from 12.35 per cent to 14.66 per cent, it told the stock exchange today.

The announcement will fuel speculation that Temasek Holdings is a potential buyer of parts of entrepreneur Eddie Groves' empire.

The Singaporean investment firm has been increasing its stake through a number of subsidiaries since last September.

However, in its notice to the Australian Securities Exchange today, issued through law firm Mallesons Stephen Jaques, Temasek indicated it stepped up its purchases in February.

Its biggest purchase was a parcel of eight million shares purchased two days ago on market at $2.14 apiece.

ABC Learning founder Mr Groves and three other directors have revealed they sold off a combined 26.9 million shares worth about $52 million from their personal holdings.

The sell-down came as a result of margin calls and followed a disappointing first half result.

ABC Learning yesterday announced it was in talks with a possible suitor for parts of its business but Temasek refused to confirm or deny it was a bidder.

"Temasek does not get involved in the operational and commercial decisions of our portfolio companies, including those in Australia - they are independent businesses managed by their respective boards,'' it said in a statement yesterday.

"It is therefore inappropriate to make statements on the short-term performance of individual portfolio companies.''