IDP Education has rejected an unsolicited takeover proposal from global investment firm Blackstone, saying the $2.50-a-share indicative offer substantially undervalues the international education business.
IDP confirmed to the ASX on 22 September that it received the confidential, non-binding proposal from Blackstone Singapore on 9 September. The proposal was made on behalf of funds managed and advised by Blackstone and its affiliates and sought to acquire 100% of IDP through a recommended scheme of arrangement.
It followed an earlier Blackstone proposal of $2.30 a share, which IDP had also rejected.
At $2.50 a share, the latest proposal would value IDP at roughly $695 million, according to Reuters.
Importantly, neither proposal was a binding takeover offer. The latest proposal was subject to a range of conditions, including due diligence, regulatory approvals, documentation, final Blackstone investment committee approval and a unanimous recommendation from the IDP Board.
It also included four weeks of hard exclusivity, with no fiduciary out. The proposed consideration would be reduced by the amount of any future dividends or distributions declared or paid by IDP before implementation.
The IDP Board said it had considered the proposal with advice from Goldman Sachs as financial adviser and Mallesons as legal adviser before rejecting it.
The Board’s position is that the proposal does not reflect what it considers to be the fundamental value of IDP’s global platform and substantially undervalues the company.
IDP said the proposal was “highly opportunistic”, pointing to the company’s current industry conditions and the fact that it is part way through a multi-year transformation program.
The Board noted that IDP shares had traded above $2.50 as recently as late June 2026, although share price movements alone do not establish the value of a company or the likelihood of a future transaction.
IDP’s argument is essentially that Blackstone’s proposal is being made before the benefits of its transformation have been fully realised.
The company said it remains confident in its strategy and believes the program will structurally reposition the business to deliver profitable growth. It also pointed to future earnings potential and benefits from the transformation that it says are not reflected in the proposal.
There is another important piece to the Board’s response: IDP says it has the financial capacity to continue investing in the business, supported by organic cash flow, existing cash reserves and its balance sheet.
For the international education sector, the proposed transaction is notable because IDP sits at the intersection of two major parts of the global student mobility ecosystem.
The company is a major international student placement business and co-owner of IELTS, while also operating English language teaching schools in Southeast Asia and its IDP Connect business.
For now, however, there is no deal.
Blackstone has made an indicative proposal, IDP has rejected it, and the company’s Board has made clear that it does not believe the $2.50 price adequately reflects the value of the business.
