A consortium of investors, including private equity giant Blackstone Group LP, are considering selling their 25% stake in GEMS Education following the delay of its initial public offering, Bloomberg reported, citing undisclosed sources.

Fajr Capital Ltd., Bahrain Mumtalakat Holding Co. and the Varkey Group Ltd. are also contemplating selling some or all of their holdings in the Dubai-based school operator, the sources said, adding that it could put a value of approximately $4 billion on the company.

The IPO plans were put on hold after the local government froze school fees, impacting the company's earnings projections, Bloomberg reported.

The investors are likely to employ Credit Suisse Group AG and Morgan Stanley as advisers, although a formal sale process has not begun, and the shareholders may decide to put off the sale, people familiar with the matter said.

Representatives for Blackstone, GEMS Education, Mumtalakat, Fajr Capital, Morgan Stanley and Credit Suisse did not comment on the matter, according to the report.