ABC founders do their dough

ABC Learning has confirmed that its founders and senior executives, the husband and wife team of Eddie and Le Neve Groves, were forced to sell more than half their holding on Tuesday because of margin calls on their stock loans, and may have to sell the rest.

Le Neve Groves sold 11 million shares at a price of $1.83 each, while Eddy Groves sold 8.03 million shares at an average price of $1.85.

The forced sales came after both directors bought heavily last year. Eddy Groves made two separate purchases of one million shares in May, with one stake going through at an average price of $7.25 and the other at $7.17.

He bought a further 1.2 million shares in June and July in six separate transactions ranging from $6.70 to $7.02, and a further 200,000 shares in November at an average price of $5.28.

After Tuesday's forced sales, he is left with 12.17 million shares and 308,880 options. The stock last traded at $2.14.

Earlier today, the company said another director, David Ryan, had been forced to sell his entire stake of 249,000 shares and director Martin Kemp, another heavy buyer last year, had been forced to sell 7.6 million shares, leaving him with 2.76 million shares.

ABC said later today that a further 21.7 million shares, including the Groves' and Kemp's interest, are also subject to margin calls.

ABC suspended its stock from trade on Wednesday following the market drubbing over the previous two days, citing interest in unspecified assets from outside parties.

The company is taking advice from its long term broker Austock Corporate Finance as well as Goldman Sachs JBWere, and legal firm Freehills.

One of the parties rumoured to be interested in ABC is the Singapore Government controlled investment firm Temasek Holdings, which bought 55 million shares at $7.30 each last May. Macquarie Group has also been cited as a potential buyer, along with various buyout firms.