IDP Education rejects Blackstone’s sweetened AUD695m bid,
IDP Education, the Australian education and testing company that co-owns the IELTS English-language examination, has rejected a sweetened AUD695m takeover proposal from Blackstone, according to a report by Reuters.
Australian education and testing company IDP Education has rejected a proposed AUD695m takeover bid from private equity firm Blackstone, according to a Reuters report. IDP's board deemed the offer inadequate, stating it significantly undervalued the company and failed to account for potential benefits of their multi-year transformation program.
Blackstone's latest offer, announced on September 9, proposed AUD2.50 per share in cash, representing a 56% premium to IDP's share price on September 8. The bid followed an earlier proposal of AUD2.30 per share. IDP's financial performance has deteriorated, with statutory net profit falling by nearly 90% over two years to AUD13.3m and revenue declining by around 23%.
The company has been impacted by stricter immigration and student visa policies in major education markets, leading to reduced international student enrollment. IDP has responded by cutting jobs and reducing the number of IELTS testing centers it operates. The company now anticipates fiscal 2027 adjusted earnings before interest and tax between AUD95m and AUD115m, down from AUD122.9m in the previous year.
Blackstone's interest in IDP follows an uptick in private equity activity in Australia's listed market, with firms targeting businesses whose valuations have been affected by weaker operating conditions. IDP's shares surged 20.7% to A$2.16 following the announcement of the rejected offer, their highest closing level in over a month. Blackstone has not indicated if it plans to make further attempts.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
