IDP Education rejected a roughly A$694.7 million takeover proposal from Blackstone, according to reports by Reuters on September 22. The private equity bidder offered A$2.50 per share in cash, which the IDP board dismissed as highly opportunistic and a substantial undervaluation of the business despite representing a roughly 56% premium to the company’s September 8 close.
Blackstone Sweetened Bid and Board Rejection Details
Blackstone-managed funds submitted the A$2.50 per share cash offer on September 9 following an earlier rejected bid of A$2.30 per share, as reported by Reuters. According to the IDP board, the revised proposal failed to account for the company’s future earnings potential and the expected benefits of its multi-year transformation program. The rejection sets up a direct conflict between private equity buyers targeting beaten-down Australian stocks and company boards banking on structural turnarounds.
Financial Deterioration and Immigration Policy Impacts
The takeover approach arrived on the heels of a steep decline in IDP’s financial performance. According to Reuters, statutory net profit dropped about 90% over a two-year period to A$13.3 million in fiscal 2026, while revenue fell roughly 23%. In response, IDP downsized its workforce and reduced its IELTS test-centre footprint, guiding for an adjusted EBIT between A$95 million and A$115 million in fiscal 2027, compared with A$122.9 million in fiscal 2026.
Did you know? IDP Education is a co-owner of the International English Language Testing System (IELTS), one of the world’s most widely used English-language proficiency exams for higher education and migration.
Market Reaction and Analyst Valuations
Market reaction to the takeover standoff pushed IDP shares higher. According to Reuters, shares of the Melbourne-based firm settled 20.7% higher at A$2.16 on Tuesday, marking a more-than-one-month high. Hersh Oberoi, global research director at Balfour Capital Group, told Reuters that the hefty premium largely reflected the extent of IDP’s share price fall rather than its intrinsic business value. Oberoi noted that Blackstone would likely need to raise its offer to around A$3 to A$3.25 per share to secure access for due diligence.
Frequently Asked Questions
Why did IDP Education reject Blackstone’s takeover bid?
According to IDP’s board, the A$2.50 per share cash offer was highly opportunistic, substantially undervalued the company, and ignored the long-term value expected from its multi-year restructuring program.
How much was Blackstone’s sweetened offer worth?
Blackstone-managed funds offered roughly A$694.7 million ($493.93 million), translating to A$2.50 per share in cash, which marked about a 56% premium over IDP’s September 8 closing price, according to Reuters reporting.
What caused IDP’s recent financial decline?
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