The Federal Court has approved Platinum Asia Investments' scheme to convert shares into ETF units, marking a significant restructuring for shareholders. Key dates for trading suspension, valuation, and dividend payments are set for August.
- Federal Court approves Platinum Asia Investments scheme of arrangement
- Shares to be suspended and converted into Platinum Asia Fund Complex ETF units
- Conversion based on post-tax net tangible assets relative to ETF NAV
- Special dividend to be paid from retained earnings after restructure costs
- Scheme implementation scheduled for late August 2025
Court Approval Signals Major Transition
Platinum Asia Investments Limited (ASX – PAI) has received a green light from the Federal Court of Australia to proceed with its proposed scheme of arrangement. This legal endorsement paves the way for a significant corporate restructuring that will see existing shareholders exchange their shares for units in the Platinum Asia Fund Complex ETF (ASX – PAXX).
The court's approval, formalised on 15 August 2025, is a critical milestone that confirms the scheme's binding and legal effectiveness once the orders are lodged with the Australian Securities and Investments Commission (ASIC) on 18 August. This marks the beginning of a carefully orchestrated transition designed to streamline the company’s investment structure.
Key Dates and Mechanics of the Scheme
Trading in Platinum Asia Investments shares will cease at the close of the market on 18 August 2025, with the shares suspended from that point. The conversion ratio for shares to ETF units will be determined based on the company's post-tax net tangible assets (NTA), adjusted for all restructuring costs, relative to the net asset value (NAV) of the Platinum Asia Fund Complex ETF. This valuation will be conducted as of the close of global markets on 22 August 2025.
In addition to the unit conversion, shareholders will receive a special dividend approximately equal to the company’s retained earnings at the valuation date, net of restructure costs. This dividend is expected to be paid around 12 September 2025, providing an immediate return to shareholders amid the transition.
Implementation and What Comes Next
The scheme's implementation is scheduled for 25 August 2025, when the final special dividend amount and scheme consideration will be announced. Following this, the company’s shares will be transferred to the ETF, and the investment portfolio will be moved to the Platinum Asia Fund. Trading of the new ETF units is expected to commence on 26 August 2025 on a normal settlement basis.
This restructure reflects a broader trend in investment management towards more flexible and liquid fund structures, potentially offering shareholders enhanced access and efficiency. However, the final unit conversion ratio remains subject to market valuations on the key date, introducing an element of uncertainty until then.
Bottom Line?
As Platinum Asia Investments transitions to an ETF structure, investors await final valuations that will define their new holdings and returns.
Questions in the middle?
- What will be the exact conversion ratio of shares to ETF units after the valuation date?
- How will the special dividend amount impact shareholder returns amid restructure costs?
- What are the longer-term implications for liquidity and management fees post-transition?