Sale of their UK business is close......On page 17 of last weeks...

Sale of their UK business is close......

On page 17 of last weeks presentation....company advised sale would happen this half.

ABS paid 71 million pounds sterling in late 2006 for the BUSY BEES centres. Now they expect to make a profit of $100m on the sale. (same presentation).....so maybe the sale will generate up to $300 million.

Recent story I have located here, from the UK, confirms demand for BUSY BEE and the fact its going to happen:

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http://www.cypnow.co.uk/news/ByDiscipline/Childcare-and-Early-Years/login/789498/


Busy Bees to sell childcare voucher business
By Cathy Wallace
Children & Young People Now
10 March 2008
One of the biggest childcare voucher schemes in the UK is up for sale.

Busy Bees, which runs a childcare voucher scheme for nearly 100,000 parents and 10,000 companies, is selling the scheme as its parent company ABC Learning continues to sell off parts of the business. ABC, which is based in Australia, is also selling parts of its business in the US. It is not yet known who might buy the Busy Bees voucher scheme but Steve Alexander, chief executive of the Pre-School Learning Alliance, said he expected there would be a lot of interest.

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Judging on the heavy trading when the Morgan Stanley deal was announced......you need to be holding onto ABS into this news:

Knowing this stock.....Imagine the following ASX announcement, and what will happen to the share price. Best thing of all - is the fact that this announcement is coming, and UK sale WILL happen.

$100 million profit

Proceeds to repay loans.

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On another point, which would be a share price mover for this stock...I think the stock may gap hard on a broker rumour or even a real takeover.

Very low forward multiple...and acceptable gearing now.