He said the sale had been going on for some time and was unrelated to the financial difficulties of some universities due to the border closures and the halt to the free movement of international students.

“Universities have been working on it for years. This is not a response related to COVID-19, ”Mr. West said.

Origins of the English language test

Education Australia began as a cooperative that emerged when international student mobility began to be commercialized by universities after the original Colombo plan.

It started as an English language testing company in Southeast Asia in 1996, and in 2006 it sold half of its stake to SEEK for $ 36 million, which valued the company at 65. millions of dollars.

In 2015, the company was listed on ASX and SEEK sold its stake for $ 320 million. The 38 universities, through Education Australia, retained their 125.1 million shares, giving Education Australia a 50 percent stake in the listed company.

Mr West said taxes would be paid as a postage credit, which would be valuable in the future.

“The sale gave us the ability to cover the payment of taxes and other fees and to make a small cash distribution on the sale. And so the balance is transferred to cash, ”Mr. West said.

“At the end of the day, universities have the advantage of owning their own stocks. And they also benefit from postage credits and derive from taxes paid by Education Australia. “

Under the deal, universities will have to wait six months before they can divest up to 50 percent of their direct stake in IDP. They will be free to sell the rest after 12 months.

Last week, IDP Education, which acts as a middleman between international students and universities, reported that its net profit fell 42% to $ 39.5 million as of June 30, on revenues 10% lower. % to $ 529 million.

IDP chief executive Andrew Barkla has warned Australia will lose the race to win back international students in countries like Britain and Canada that have relaxed their borders.