Platinum Asia Investments Swaps Shares for ETF Units, Pays Special Dividend
Platinum Asia Investments has finalized its restructuring scheme, exchanging shares for units in the Platinum Asia Fund Complex ETF and declaring a substantial special dividend for shareholders.
- Scheme consideration set at 0.1818 new units per share
- Special dividend of $0.2011 per share declared, 91.51% franked
- Post-tax net tangible asset per share adjusted to $0.9912
- New units to begin trading on 26 August 2025
- Special dividend payment expected around 12 September 2025
Restructure Finalized with Shareholders Receiving ETF Units
Platinum Asia Investments Limited (ASX – PAI) has officially completed its much-anticipated scheme of arrangement, marking a significant transition from its traditional shareholding structure to an exchange for units in the Platinum Asia Fund Complex ETF (ASX – PAXX). This move, designed to streamline the company’s investment vehicle and potentially enhance liquidity and investor access, was executed after market close on 25 August 2025.
The scheme consideration ratio was precisely calculated based on the company’s post-tax net tangible assets (NTA) and the fund’s net asset value (NAV) as of 22 August 2025. Shareholders will receive approximately 0.1818 new ETF units for every share they held, with rounding rules applied to ensure whole unit issuance. For example, an investor holding 1,000 shares will receive 182 new units in the ETF.
Special Dividend Declared to Return Retained Earnings
Alongside the unit exchange, Platinum Asia Investments declared a special dividend of $0.2011 per share, representing the company’s retained earnings after restructure-related costs. Notably, this dividend is 91.51% franked, providing a significant tax benefit to eligible shareholders. The dividend record date was 19 August 2025, with payments scheduled for around 12 September 2025.
This special dividend serves as a direct cash return to shareholders, complementing the value they receive through the new ETF units. The company’s retained earnings stood at approximately $74.4 million, with franking credits of $22.7 million as of the valuation date.
Implications for Shareholders and Market
With the new units commencing trading on 26 August 2025, investors will transition from holding shares in Platinum Asia Investments to units in a listed ETF structure. This shift may offer enhanced transparency and potentially improved liquidity, aligning with broader market trends favoring ETF investment vehicles.
However, shareholders will need to adjust to the new unit pricing and consider the implications of the special dividend on their tax positions. The company’s post-tax NTA per share, adjusted for the dividend and restructure costs, was $0.9912, while the ETF’s NAV per unit was $5.4522, reflecting the relative valuation underpinning the exchange ratio.
Looking Ahead
Platinum Asia Investments’ restructure represents a strategic evolution in its capital structure, potentially positioning the company for greater flexibility and investor appeal. Market participants will be watching closely to see how the new ETF units trade and how the dividend payment impacts shareholder sentiment.
Bottom Line?
As Platinum Asia Investments transitions shareholders into ETF units with a franked special dividend, the market awaits the next phase of investor response and trading dynamics.
Questions in the middle?
- How will the market price the new ETF units relative to the previous shares?
- What tax implications will shareholders face beyond the franked dividend?
- Will this restructure attract new investors seeking ETF exposure to Asian markets?
