Key facts
- IDP said the A$3 per share proposal substantially undervalues the firm and called it "opportunistic."
- The revised offer valued IDP Education at about A$833.7 million, or $564.50 million.
- Blackstone's latest offer sits 20% to 30% higher than the two bids IDP already turned down.
- IDP reported a nearly 75% fall in annual statutory net profit in August and forecast weaker fiscal 2027 operating earnings.
- Blackstone did not immediately respond to a Reuters request for comment.
IDP Education rejected a revised buyout proposal from Blackstone on November 16, the third bid the Australian company has turned down. The offer valued the IELTS English language exam co-owner at about A$833.7 million ($564.50 million), Reuters reported.
The company said the proposal was not in the best interest of shareholders because it substantially undervalues the firm, calling it "opportunistic." IDP said the offer was "well below the level that the IDP Board would be willing to recommend to shareholders and hence it does not warrant further engagement with Blackstone."
Blackstone's latest offer of A$3 per share sits 20% to 30% higher than the two bids IDP Education has already turned down. Blackstone did not immediately respond to a Reuters request for comment.
The bids follow a sharp downturn in the international education sector. In August, IDP reported a nearly 75% fall in annual statutory net profit and forecast weaker fiscal 2027 operating earnings. IDP said it expects market volumes to contract in fiscal 2027 compared with last year, but it remains confident that conditions are in place for student volumes to return to sustainable growth over the coming years.