IDP Education has hired advisory firm Greenhill for a company restructure that will see its major shareholder sell down an interest in the business.
Working for investors is Melbourne-based boutique firm Flagstaff Partners and law firm MinterEllison.
Greenhill’s interest – revealed online by DataRoom on Thursday – comes as it also works alongside Macquarie Group to advise Cleanaway on a potential acquisition of up to $3bn worth of Australian waste management assets owned by rival Suez, with talks said to be heating up.
IDP told the market on Thursday that it had entered into an agreement regarding a restructure of Education Australia’s 40 per cent interest in IDP.
Education Australia, a company owned by 38 Australian universities, will make an in specie distribution of a 25 per cent stake in the business to all of its shareholders that would include franking credits.
It will also sell down a 15 per cent interest through a block trade, scheduled to occur no later than December 11.
IDP said that the proceeds of the block trade would mostly be used by Education Australia to pay capital gains tax linked to the transaction.
An escrow period will be in place from December 11 for six months for the shareholders.
IDP Education currently has a market value of $6.74bn and the restructure comes after Education Australia announced to the market in October that it may realise capital for its shareholders.
IDP said in a statement that should the proposed transaction be completed, Education Australia would no longer hold any shares in IDP.
The COVID-19 virus and international travel restrictions linked to the global outbreak have taken a toll on universities in Australia that rely heavily on revenue from international students.
Sources say that Education Australia had hoped to sell a stake last year worth about $2bn.
IDP Education provides student placement services to enrol into universities, schools and colleges.
The main activities of Education Australia, meanwhile, are to promote the Australian university sector and its internationalisation.
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