Kidicorp bid 'simply to buy back control'

Wayne Wright

Rather than a crack at full ownership, Kidicorp founder Wayne Wright's $5.9 million takeover bid for the childcare centre operator is simply to buy back control.

Wright, through his family trust Mitchell Investment, yesterday launched a full takeover for the 51 per cent of Kidicorp he does not already own. The bid offers 19c a share - 1.5c above Thursday's close.

But Wright said all he was after was the three million-or-so shares to hoist him over the 50 per cent threshold for legal control.

"If I had wanted 100 per cent the price wouldn't be 19c would it?"

Wright, who founded the company 10 years ago, had his shareholding reduced below 50 per cent this month when the company issued five million shares for $800,000 to satisfy the Takeovers Panel.

"Where I find myself now, between 20 and 50 per cent, I'm not allowed to buy any shares. The only way I can get back over 50 per cent is to make a full offer," Wright said.

"The offer really speaks for itself. There is nothing sinister there."

After an independent review, Wright will write to shareholders inviting them to sell into the offer.

Bay of Plenty-based Wright started Kidicorp in 1996 with son Wayne jnr and listed it in 2003 by backing into shell company Feverpitch.

The 60-year-old's recent decision to stand down as chief executive next year has drawn so much flak from staff that he is now reconsidering.

"I thought I would just hire a CEO next year to run the company, and I still might, but there's been so much negative feedback from people who don't want me to step down I've had to withdraw that comment."

The intention had been to free Wright up to spend more time hunting for new acquisitions. But employing an acquisitions manager this week meant that plan was now uncertain.

Kidicorp is gearing up for a 10 per cent increase in new children from next July when the Government starts paying for up to 20 hours of childcare a week for 3- and 4-year-olds.

With 80 centres, Kidicorp has about 6 per cent of the preschool market.

Shares in Kidicorp closed yesterday at 19.8c.