Federal Court Approves Platinum Asia Investments’ Scheme, Shares Suspended from ASX
Platinum Asia Investments Limited has secured Federal Court approval for its scheme of arrangement, marking a key structural shift as its shares prepare to convert into ETF units.
- Federal Court approves scheme of arrangement
- Scheme legally effective as of 18 August 2025
- Shares suspended from ASX trading from close of 18 August
- Shares to be exchanged for Platinum Asia Fund Complex ETF units on 25 August
- Final exchange ratio to be announced on 25 August before 10am Sydney time
Scheme Approval and Legal Effectiveness
Platinum Asia Investments Limited (ASX, PAI) has reached a significant milestone in its corporate evolution. On 15 August 2025, the Federal Court of Australia granted approval for the company’s proposed scheme of arrangement with its shareholders. This approval was formally lodged with the Australian Securities and Investments Commission (ASIC) on 18 August, rendering the scheme legally effective under the Corporations Act.
The court’s endorsement, presided over by Justice Cheeseman, follows shareholder agreement at a meeting held on 12 August. This legal green light clears the path for the company’s planned transition from a listed investment company structure to an exchange-traded fund (ETF) model.
Trading Suspension and Share Conversion
In line with the scheme’s implementation, Platinum Asia Investments’ shares were suspended from trading on the ASX at the close of business on 18 August. This suspension is a necessary step ahead of the share-for-unit exchange scheduled for 25 August 2025.
On the implementation date, shareholders will see their PAI shares converted into units of the Platinum Asia Fund Complex ETF (ASX, PAXX). The conversion ratio will be carefully calculated based on the company’s post-tax net tangible assets (NTA), adjusted for transaction costs, relative to the ETF’s net asset value (NAV) as of the close of global markets on 22 August 2025.
Awaiting Final Exchange Ratio
The final exchange ratio, a critical figure determining the number of ETF units each shareholder will receive per PAI share, is expected to be announced before 10am Sydney time on 25 August. This announcement will be closely watched by investors, as it directly impacts the value and composition of their holdings post-conversion.
Elizabeth Norman, Director of Investor Services and Communications, remains the point of contact for shareholders seeking further information during this transitional phase.
Implications for Investors and Market
This structural change reflects a broader trend in investment management, where ETFs offer greater liquidity, transparency, and cost efficiency compared to traditional listed investment companies. For Platinum Asia Investments, the move could enhance market accessibility and appeal to a wider investor base.
However, the success of this transition will hinge on market reception to the ETF units and the final exchange ratio’s fairness. Shareholders will be keen to assess how their new holdings perform relative to the legacy shares.
Bottom Line?
As Platinum Asia Investments completes its transformation, all eyes turn to the final exchange ratio and the market’s response to its new ETF structure.
Questions in the middle?
- What will the final exchange ratio reveal about the relative valuations of PAI shares and PAXX units?
- How will the market react to the suspension and subsequent relisting as ETF units?
- What are the long-term implications for shareholder returns under the new ETF structure?
