Sydney — Australian education company IDP Education has rejected an improved takeover proposal from U.S. private-equity firm Blackstone, reigniting a dispute over the value of the international education business.
IDP said Tuesday it had rejected Blackstone’s proposal, valued at approximately A$694.7 million, or $493.8 million. The company described the offer as highly opportunistic and said it substantially undervalued the business.
Blackstone’s proposal, made on September 9, offered A$2.50 in cash for each IDP share. That represented a premium of approximately 56% over IDP’s September 8 closing price.
Despite the board’s decision to reject the offer, IDP shares climbed 20.7% on Tuesday to A$2.16, their highest level in more than a month.
The proposal followed an earlier offer from Blackstone of A$2.30 per share, which IDP had also rejected.
IDP, which co-owns the IELTS English-language examination business, cited its ongoing multi-year transformation programme as part of the reasoning behind its decision.
The company said its board believed the Blackstone proposal did not reflect the business’s future earnings potential or the benefits that have yet to be realized from its transformation efforts.
IDP has come under significant pressure in recent years as changes to immigration and student-visa policies in Australia, Canada and Britain have weighed on earnings. Its shares have fallen nearly 100% from their 2021 peak.
The company’s international education operations have also been hurt by weaker student numbers. IDP reported a 25% decline in student volumes across its four key destination markets — Australia, the United Kingdom, the United States and Canada — during fiscal 2026.
Last month, IDP warned that earnings would be weaker in 2027, underscoring the challenges facing international education providers as governments alter policies and visa approvals decline.
The rejected proposal highlights the valuation gap that can arise when private-equity firms target companies whose shares have fallen sharply while boards argue that temporary industry pressures have masked longer-term business value.
The next phase will depend on whether Blackstone makes another proposal or whether the two sides remain divided over IDP’s valuation.
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