KidiCorp's founder confident

Kidicorp founder Wayne Wright believes he will regain control of the publicly listed childcare company, despite its independent directors yesterday advising shareholders to reject his family trust's takeover offer.

An independent adviser's report gave a valuation range of 21c to 28c for KidiCorp shares, higher than the 19c-a-share takeover offer from Wright's family trust - Mitchell Investment Trust - mailed to shareholders yesterday.

The trust's stake slipped below 50 per cent last month when KidiCorp issued shares.

Wright said the takeover bid was to increase the trust's 49.3 per cent stake to more than 50 per cent.

Independent directors committee chairman Richard Waddel said the offer was too low compared with the valuation and the committee advised shareholders to reject it.

He said though that trading in the NZSX-listed stock was thin and the shares had "limited liquidity".

Wright said shares were trading at 18c when he made the 19c-a-share offer and he was confident enough shareholders would take up the offer before it closed. Shares in KidiCorp closed up 1c yesterday on 19c.

Takeover bid

* Mitchell Investment Trust launched a 19c-a-share takeover bid for KidiCorp this month.

* The trust's stake slipped below 50 per cent last month and the takeover offer is a way to regain control.

* KidiCorp independent directors advise shareholders to reject the offer because it is below the 21c to 28c independent valuation range.