Nursery group ditches £70m float

NURSERY group Leapfrog has abandoned plans for a £70 million flotation and is in discussions with a buyer that has offered cash.

The chain of 40 nurseries had been expected to float in June, but is now believed to be holding talks with either Sun Capital, the private equity firm headed by Hugh Osmond, or Nord Anglia, the quoted educational supply business.

It is understood that a float was initially Leapfrog's preferred route, but that its projected stock market valuation was trumped by the cash bid.

It would be the second time that Leapfrog has scrapped plans to go public. A similar attempt came to nothing in May 2002 when it was also valued at about £70 million.

The chain was founded by Sue Husbands after she had trouble finding day care for her children.

Derek Mapp, founder of the Tom Cobleigh pubs group, was appointed chairman in 1998 and arranged venture capital backing to fund expansion.

Backers include European Acquisition Capital and UBS Capital. A spokesman for Leapfrog was unable to comment.