Sept 22 (Reuters) – Australia’s IDP Education said on Tuesday it had rejected a roughly A$694.7 million ($493.79 million) takeover proposal from Blackstone, saying the approach substantially undervalued the company.
Blackstone Singapore on September 9 offered A$2.50 per share in cash, representing a premium of about 56% to the stock’s September 8 close.
IDP, a co-owner of the IELTS English language exam, did not say whether it received the takeover offer after or during market hours on September 9.
The offer came after IDP rejected an earlier A$2.30 per-share proposal from the suitor.
IDP said on Tuesday its board considered the proposal “highly opportunistic”, given current industry challenges and its ongoing multi-year transformation programme.
“Board also considers that the indicative proposal does not factor in the future earnings potential of the business… and the associated benefits that are yet to be realised,” the firm said in a statement.
Shares of Melbourne-based IDP closed 20.7% higher at A$2.16 on Tuesday, marking their highest closing level since August 19.
Blackstone didn’t immediately respond to a Reuters request for comment.
($1 = 1.4069 Australian dollars)
(Reporting by Rajasik Mukherjee; Editing by Subhranshu Sahu)
