IDP Education (ASX:IEL) Rejects AUD 2.50-a-Share Approach as Transformation Continues

Aditi Sarkar

23 September 2026 02:33 PM AEST

IDP Education (ASX:IEL) Rejects AUD 2.50-a-Share Approach as Transformation Continues

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IDP Education (ASX:IEL) has rejected a second unsolicited, non-binding proposal to acquire the company for AUD 2.50 cash per share. The board said the proposal undervalues the Business as it works through weaker international student flows and a multi-year cost and technology transformation. The latest approach followed an earlier AUD 2.30-per-share proposal and arrived shortly after IDP reported lower FY26 Revenue and student Placement volumes.

A Second Proposal Meets the Same Response

The latest proposal was submitted on 9 September 2026 and IDP confirmed its rejection on 22 September. It was the second approach this year after an earlier AUD 2.30-per-share proposal. The new proposal carried a price of AUD 2.50 per share and was indicative and non-binding.

The terms sought four weeks of hard exclusivity without a Fiduciary out and remained subject to due diligence, final Investment committee approval and regulatory approvals. IDP said the proposal did not reflect the future Earnings potential and benefits of its transformation program or the value of its global platform. The board also said the company has capacity to continue investing through organic cash flow, cash reserves and its balance sheet.

FY26 Results Show Pressure on Volumes

IDP reported FY26 revenue of AUD 795.4mn, down 11%, while adjusted EBIT fell 7% to AUD 123mn. Student placement volumes declined 27% and English-language testing volumes fell 8%. Student placement revenue per placement increased 11%, partly offsetting lower activity.

The company delivered AUD 32mn in net savings against a AUD 25mn target and removed about 1,250 roles. It declared an unfranked final Dividend of 6 cents per share, announced a buyback of up to AUD 50mn and reported net Debt of AUD 121mn, with net Leverage at 1.0 times.

FY27 Guidance Keeps the Focus on Execution

IDP guided to FY27 adjusted EBIT of AUD 95mn to AUD 115mn, with volumes expected to decline 20% to 30%. One-off transformation costs are expected to be about AUD 40mn.

International education conditions remain affected by policy changes across major destination markets. Australia and Canada have capped international student numbers, while compliance settings have tightened in Australia and the United Kingdom. IDP's testing and student placement businesses are both exposed to changes in international study demand.

What to Watch Next

There is currently no transaction for shareholders to vote on. Attention now turns to whether the proposal is revised and how IDP's operating performance develops through FY27.

The company's transformation program, cost base, student placement volumes, testing activity and policy settings across major study destinations remain central to the next phase. Any revised proposal would require board engagement before Due Diligence could begin.

FAQs

Q: Why did IDP Education reject the AUD 2.50-per-share proposal?

A: The board said the proposal undervalued the company and did not reflect the future earnings potential and benefits of its transformation program.

Q: Was the proposal binding?

A: No. The proposal was indicative and non-binding and remained subject to due diligence, approvals and other conditions.

Q: What did IDP report for FY26 revenue?

A: IDP reported FY26 revenue of AUD 795.4mn, down 11%.

Q: What is IDP guiding for FY27 adjusted EBIT?

A: IDP guided to adjusted EBIT of AUD 95mn to AUD 115mn for FY27.

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