IDP Education Rejects Blackstone's $494M Takeover Bid

IDP Education rejected a sweetened takeover proposal from Blackstone worth approximately A$694.7 million, or $493.93 million, arguing that the bid is opportunistic and undervalues the company as it executes a multi-year restructuring.

"The proposal is highly opportunistic and substantially undervalues IDP Education," the Melbourne-based firm said in a statement regarding the decision.

Sweetened Bid and Market Response

Funds managed by Blackstone offered A$2.50 per share in cash for IDP on September 9. The revised proposal followed an earlier, rejected bid of A$2.30 per share and represented an approximate 56% premium over IDP's September 8 closing price.

Following the rejection and disclosure of the negotiations, shares of IDP jumped 20.7% to settle at A$2.16 on Tuesday, marking the stock's highest level in more than a month.

Restructuring Amid Policy Headwinds

The private equity interest arrives as IDP navigates a sharp contraction in its core financial metrics. The company's statutory net profit plummeted by roughly 90% over a two-year span, shrinking to A$13.3 million in fiscal 2026. Annual revenue dropped about 23%, pressured by tighter international student-visa regulations and immigration policy overhauls across primary study destination markets.

Management is currently betting on a multi-year restructuring plan to offset these regulatory headwinds and restore margins, contending that the private equity suitor is attempting to capitalize on the temporary trough in valuation.

Market Outlook and Next Steps

Market observers note that the premium offered by Blackstone is largely a function of IDP's recent share price decline rather than a full reflection of the company's long-term earnings potential.

"The deal's premium largely reflected how far IDP's shares had fallen rather than the underlying value of the business," said Hersh Oberoi, global research director at Balfour Capital Group, who expects Blackstone to return with a higher bid.

Oberoi anticipates that Blackstone will likely need to raise its proposal to a range of A$3 to A$3.25 per share to successfully secure access to IDP's books for due diligence.