By Kumar Tanishk and Jasmeen Ara Islam Shaikh
Nov 11 (Reuters) – Shares of Australia’s IDP Education rose more than 16% on Wednesday after the IELTS English language exam co-owner said it was weighing a sweetened takeover proposal from Blackstone valuing it at about A$833.7 million ($573.34 million).
Here are some details:
• The A$3-per-share proposal represents a 20% premium to Blackstone’s previous offer and is well above the A$2.04 median analyst price target compiled by LSEG. Even so, IDP’s shares continued to trade below the latest offer price.
• The proposal is Blackstone’s third approach for the company. IDP previously rejected offers of A$2.30 and A$2.50 per share, saying they undervalued the company and were made at a “highly opportunistic” time.
• IDP said its board has not yet decided whether to support the non-binding proposal and cautioned there is no certainty a transaction will proceed. Blackstone declined to comment.
• The sweetened bid is “enough to start a conversation and probably to open the books, but not enough for a recommendation,” David Tuckwell, chief investment officer at ETF Shares, told Reuters.
• “Blackstone is buying a market-leading global platform at a cyclical low,” Tuckwell said, adding that IDP’s co-ownership of IELTS makes it a scarce and cash-generative asset.
• IDP co-owns IELTS with the British Council and Cambridge University Press & Assessment and places students at universities in Australia, Britain, the United States, Canada, New Zealand and Ireland.
• Blackstone’s approach comes after 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 shares closed 16.3% higher at A$2.57, marking their highest since late June and best day since September 22.
• The stock hit a record low in September and has lost about 55% so far this year despite Wednesday’s surge.
($1 = 1.4541 Australian dollars)
(Reporting by Jasmeen Ara Shaikh and Kumar Tanishk in Bengaluru; Editing by Sahal Muhammed, Sherry Jacob-Phillips and Subhranshu Sahu)
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