A combination of Covid, immigration/student visa caps and competing English language tests for students and immigrants, resulted in IDP Education (IEL AU)‘s share price falling ~95% from its 4Q21 peak.
Blackstone saw a bargain, tabling two NBIOs (A$2.30/share initially, then A$2.50/share on the 9th September), both of which were rightfully rejected.
Blackstone has returned with a A$3/share NBIO, by way of a Scheme, ~30% above its initial approach, and perhaps ~100% to undisturbed. IDP’s board is considering the latest proposal.
The Trade:
IDP may still push back.
But with no visible turnaround in its fortunes, IDP should engage, with a views towards extracting higher terms from Blackstone.
Trading at a ~13% gross spread to terms (as I type).
If not in, I’d be picking up shares here and on weakness.