Australia’s IDP Education has rejected a revised takeover proposal from private equity giant Blackstone worth about A$694.7 million ($494 million), arguing that the offer does not adequately reflect the company’s future earnings potential.
Blackstone offered A$2.50 per share in cash on September 9, representing a 56% premium to IDP’s share price before the takeover approach became public. The proposal followed an earlier A$2.30-per-share offer that was also rejected.
IDP, which co-owns the IELTS English-language testing business, said its board considered the latest proposal opportunistic and believed it undervalued the company and the benefits expected from its ongoing transformation programme.
The rejection comes as IDP faces significant financial pressure from tighter immigration and student-visa policies in major international education markets. Its statutory net profit fell about 90% to A$13.3 million in fiscal 2026, while revenue declined 23%.
Despite the downturn, the company expects adjusted earnings before interest and tax of between A$95 million and A$115 million in fiscal 2027 as it works to recover performance.
IDP shares closed 20.7% higher at A$2.16 following the latest development, reflecting investor attention around the potential takeover.
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