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.
The company says that the PE firm’s latest offer does not adequately reflect its longer-term earnings potential.
Blackstone-managed funds offered AUD2.50 per IDP share in cash on 9 September. The offer followed an earlier proposal of AUD2.30 per share and represented a premium of around 56% to IDP’s closing share price on 8 September.
IDP’s board rejected the latest proposal, saying it substantially undervalued the company and did not take sufficient account of the potential benefits of a multi-year transformation programme currently being implemented.
The approach comes after a sharp deterioration in IDP’s financial performance. Statutory net profit fell by about 90% over the two years to fiscal 2026 to AUD13.3m, while revenue declined by approximately 23%.
The company has been hit by tighter immigration and student visa policies in several major education markets, which have reduced international student flows. In response, IDP has cut jobs and reduced the number of IELTS testing centres it operates.
IDP expects adjusted earnings before interest and tax of between AUD95m and AUD115m for fiscal 2027, compared with AUD122.9m in the previous financial year.
The situation highlights the tension between private equity buyers seeking to acquire companies affected by cyclical or temporary challenges and boards that believe restructuring programmes can restore earnings and unlock greater value without a sale.
Blackstone’s interest in IDP follows a broader increase in private equity activity in Australia’s listed market, with buyout firms targeting businesses whose valuations have been pressured by weaker operating conditions.
IDP shares rose 20.7% to A$2.16 on Tuesday, their highest closing level in more than a month, following the disclosure of the rejected proposal.
Blackstone has not indicated whether it intends to make a further approach.
