Platinum Asia’s Delisting Signals Major Shift — What Risks Lie Ahead?
Platinum Asia Investments has finalized its scheme of arrangement, transferring shares to an ETF structure and delisting from the ASX. Shareholders now hold units in the Platinum Asia Fund Complex ETF as the company undergoes a significant restructure.
- Scheme of arrangement implemented, shares transferred to Platinum Asia Fund Complex ETF
- 67.3 million new ETF units issued to shareholders as scheme consideration
- Company delisted from ASX effective 26 August 2025
- Board changes with two directors replaced by Platinum nominees
- Asset transfer to underlying fund to complete stage two of restructure
Scheme Implementation and Shareholder Impact
On 25 August 2025, Platinum Asia Investments Limited (ASX – PAI) confirmed the successful implementation of its previously announced scheme of arrangement. Under this scheme, all ordinary shares in the company were transferred to Platinum Investment Management Limited, acting as the responsible entity for the Platinum Asia Fund Complex ETF (ASX – PAXX). In exchange, shareholders received fully paid units in the ETF, totaling over 67 million new units issued.
This transition marks a significant shift from a traditional listed investment company structure to an exchange-traded fund model, which may offer shareholders enhanced liquidity and potentially lower management costs. Eligible shareholders will soon receive holding statements confirming their new unit holdings, while units allocated to ineligible shareholders have been sold with proceeds to be distributed accordingly.
Delisting and Board Changes
Coinciding with the scheme’s implementation, Platinum Asia Investments has applied to be removed from the official ASX list, with delisting expected to take effect before market open on 26 August 2025. This move effectively ends the company’s independent listing after years on the exchange.
Alongside these structural changes, the company’s board saw the resignation of two directors, Margaret Towers and Ian Hunter. They were promptly replaced by Platinum nominees Jeff Peters and Andrew Stannard, signaling a closer alignment with the fund manager’s strategic direction.
Ongoing Restructure and Asset Transfer
Stage two of the company’s restructure is set to complete on the same day as the delisting. This involves transferring the company’s investment assets into the Platinum Asia Fund (the Underlying Fund), with the ETF receiving new units in the Underlying Fund as consideration. This layered structure aims to streamline asset management under the ETF umbrella, potentially improving operational efficiency and investor transparency.
While the immediate impact on shareholder value will depend on the performance of the new ETF units, this restructure reflects broader industry trends favoring ETF vehicles over traditional listed investment companies. Investors will be watching closely to see how the new structure performs in the coming months.
Bottom Line?
As Platinum Asia Investments transitions fully into an ETF structure and exits the ASX, investors face a new chapter defined by different risks and opportunities.
Questions in the middle?
- How will the market price and liquidity of the new ETF units compare to the former shares?
- What are the long-term cost and performance implications of the restructure for shareholders?
- Will further board or strategic changes follow now that Platinum nominees control the company?
