IDP Education has rejected an improved takeover proposal from Blackstone worth about A$694.7M, or $493.8M, saying the A$2.50-a-share cash offer substantially undervalues the business. Blackstone submitted the proposal on September 9, after IDP rejected an earlier A$2.30-a-share offer, and the latest bid represented a 56% premium to IDP's September 8 closing price. IDP Education said its board considered the proposal highly opportunistic given current industry conditions and its ongoing multi-year transformation program, and that the offer did not reflect the company's future earnings potential or the benefits of its transformation that are yet to be realized. IDP Education shares closed about 21% higher at A$2.16 on the Australian Securities Exchange on Tuesday.
Blackstone Group IncBlackstone's improved A$2.50/share takeover bid for IDP was rejected, leaving its acquisition attempt unsuccessful.
IDP rejected Blackstone's improved A$2.50/share offer as undervaluing the business, with shares closing about 21% higher.
