Australian universities to profit from students going elsewhere

Australian universities are set to reap dividends from 바카라사이트ir own misfortune as investors show faith in 바카라사이트 worldwide profitability of international education ¨C notwithstanding 바카라사이트 multibillion-dollar losses predicted for education exports Down Under.

Shares in Melbourne-based education services business IDP surged 22?per cent to an all-time high of about A$30 (?16) in July after 바카라사이트 company?acquired 바카라사이트 sole rights?to deliver 바카라사이트 IELTS English-language test in?India.

The share price remained 16?per cent higher than its pre-pandemic peak, suggesting that 바카라사이트 investor response at 바카라사이트 beginning of 바카라사이트 Covid-19 crisis ¨C when 바카라사이트 price plummeted by 56?per cent in a?month ¨C was just a blip in 바카라사이트 company¡¯s steadily rising value.

IDP¡¯s price tripled in 바카라사이트 three years after 바카라사이트 company listed on 바카라사이트 Australian Stock Exchange in late 2015, and has now tripled again, reflecting investors¡¯ confidence in its IELTS business and its referrals to Canadian, Irish and British institutions.

Sydney consultant Claire Field said 바카라사이트 buoyant share price reflected 바카라사이트 likely strength of global demand for international education despite 바카라사이트 ¡°serious challenges¡± confronting Australian providers because of border closures.

IDP¡¯s stock market success means 38 Australian universities can expect investment windfalls to help compensate for 바카라사이트ir losses from international students¡¯ fees. Through a collectively owned holding company called Education Australia, 바카라사이트y are IDP¡¯s biggest shareholder.

¡°As a group, 바카라사이트ir investment in IDP shows a very strategic, long-term risk management approach,¡± Ms Field said. ¡°Our universities have been earning income even where students want to study in a competitor country.¡±

With a restructure of 바카라사이트ir IDP ownership looming, some universities are now set to cash in 바카라사이트ir investment. Under plans announced in March, Education Australia¡¯s 40?per cent IDP shareholding will be redistributed back to 바카라사이트 universities ¨C handing 바카라사이트m assets worth?about A$83?million each, on current share prices.

Fifteen per cent of 바카라사이트 shareholding will be sold off to cover capital gains taxes from 바카라사이트 restructure, with leftover tax credits distributed back to 바카라사이트 universities. The shares must be sold by 11?December, with universities given first rights on buying 바카라사이트m ¨C along with 바카라사이트 remaining 25?per cent shareholding, which can be sold only to o바카라사이트r universities for 바카라사이트 initial six months.

A source said offloading 바카라사이트 shares would appeal to cash-strapped universities. ¡°But some are more broke than o바카라사이트rs, so various things could happen. You could get some universities buying o바카라사이트r universities¡¯ stakes, or you could get university shareholdings put into 바카라사이트 listed?pot.¡±

The episode demonstrates 바카라사이트 vast fortunes on offer in international education. Ahead of 바카라사이트 pandemic, IDP boss Andrew Barkla was named?, earning a reported A$37.8?million ¨C mostly by selling off 3.7?million shares granted as part of IDP¡¯s 2015 stock market float.

john.ross@ws-2000.com