Peak Rare Earths Acquisition Approved: What’s Next for Shareholders?
Peak Rare Earths has secured court approval for its acquisition by Shenghe Resources, marking a pivotal moment with shares set to suspend and delist soon. Shareholders will receive $0.443 per share as the scheme moves toward completion.
- Supreme Court of NSW approves Peak Rare Earths acquisition scheme
- Scheme becomes legally effective as of 19 September 2025
- Peak shares suspended from ASX trading from close of 19 September
- Scheme consideration set at $0.443 per share, payable 30 September
- Peak expected to be delisted from ASX on 1 October 2025
Court Approval Finalises Acquisition Scheme
Peak Rare Earths Limited has reached a significant milestone in its acquisition journey, with the Supreme Court of New South Wales granting formal approval to the scheme of arrangement proposed by Shenghe Resources (Singapore) Pte. Ltd. This legal endorsement, announced on 19 September 2025, renders the scheme effective immediately, setting the stage for the next phase of the transaction.
Trading Suspension and Delisting on the Horizon
Following the court’s decision, Peak’s shares were suspended from trading on the Australian Securities Exchange (ASX) at the close of trading on 19 September. This suspension is a standard step ahead of the formal implementation of the scheme, which includes the transfer of shares to Shenghe and the payment of the agreed consideration. The company is slated for delisting from the ASX on 1 October 2025, marking the end of its public trading chapter.
Scheme Consideration and Payment Timeline
Under the terms of the scheme, eligible Peak shareholders; those recorded on the share register as of 7 – 00 pm Sydney time on 23 September 2025; will receive a cash payment of $0.443 per share. This figure is derived from the total acquisition price of $195 million divided by the total shares on issue. The payment is expected to be processed on 30 September, providing shareholders with a clear and timely exit value.
Implications for Shareholders and Market Observers
For shareholders, the acquisition offers a definitive liquidity event at a fixed price, concluding their investment in Peak Rare Earths. For the broader market, Shenghe’s consolidation of Peak signals a strategic move within the rare earths sector, potentially enhancing Shenghe’s resource portfolio and market positioning. However, the transition also raises questions about future operations and the integration of Peak’s assets under Shenghe’s ownership.
Looking Ahead
While the scheme’s timetable is indicative and subject to external factors, the current trajectory suggests a smooth completion. Peak’s shareholders and industry watchers will be closely monitoring the final payment and the company’s delisting, as well as Shenghe’s plans post-acquisition. This development underscores the ongoing consolidation trends in the rare earths mining sector, driven by strategic resource acquisition and market positioning.
Bottom Line?
As Peak Rare Earths prepares to exit the ASX, all eyes turn to Shenghe’s next moves in the rare earths market.
Questions in the middle?
- How will Shenghe integrate Peak’s assets into its existing operations?
- What impact will the acquisition have on rare earths supply dynamics?
- Could there be further consolidation in the sector following this deal?
