Education Australia today announced it intends to sell 15% of shares on issue in IDP Education (IEL) and shift the remaining shares, 25% of the total, to its 38 university stakeholders. The move wont have any impact on IDP’s operations or strategy, though it does mean the market mover in the domestic education space will no longer be directly aligned. The universities will have their shares in escrow, with the ability to sell 50% of the holding after 6 months, and 100% of the position after 12 months. The sale could see IDP move up the index weighting, a positive for the price however the market was a bit skittish knowing there was a sizable block sale on the cards. Shares finished down -5.65%.
MM is now neutral IDP, at least until this overhang of stock clears.
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