The Supreme Court of Western Australia has approved Genesis Minerals’ acquisition of Magnetic Resources, setting a clear timetable for scheme implementation and ASX trading suspension.
- Court approves scheme of arrangement
- Magnetic shares to suspend on 10 June
- Scheme effective from 10 June
- Scheme shareholders receive consideration on 22 June
- Genesis shares commence normal trading on 23 June
Court Approval Clears Path for Acquisition
The Supreme Court of Western Australia has formally approved the scheme of arrangement under which Genesis Minerals Limited (ASX:GMD) will acquire 100% of Magnetic Resources NL’s (ASX:MAU) shares. This legal endorsement marks the final regulatory hurdle before the scheme becomes effective, confirming Genesis’s $639 million takeover bid is set to proceed.
Timetable for Scheme Implementation and Trading Suspension
Magnetic Resources will lodge the court’s orders with the Australian Securities and Investments Commission on 10 June 2026, the date the scheme officially becomes effective. Correspondingly, Magnetic’s ordinary and contributing shares will be suspended from trading on the ASX at the close of trading that day, signaling the end of Magnetic’s independent market presence.
Following the suspension, Genesis Minerals shares will begin trading on a deferred settlement basis from 11 June. The scheme record date, which determines shareholder entitlements, is set for 5:00pm AWST on 15 June. Scheme shareholders will then receive their consideration, cash and/or new Genesis shares, on the implementation date of 22 June 2026, with Genesis shares commencing normal trading the following day.
Shareholder Consideration and Scaleback Arrangements
Shareholders who hold Magnetic shares as of the record date will receive the scheme consideration according to their election, subject to any scaleback arrangements. These scaleback provisions were introduced due to excess demand for the cash component of the offer, a dynamic disclosed in earlier filings that could dilute the cash portion for some shareholders.
Next Steps and Market Implications
The orderly transition from Magnetic to Genesis ownership is now on track for completion by late June, with the ASX suspension and subsequent delisting of Magnetic shares imminent. Market participants will be watching how the Genesis share price responds once the new shares commence normal trading on 23 June, as well as any potential impacts on liquidity and investor sentiment in the mining exploration sector.
Bottom Line?
With court approval secured, Magnetic Resources’ takeover by Genesis Minerals moves into execution, closing a significant chapter for shareholders and reshaping the ASX mining landscape.
Questions in the middle?
- How will Genesis Minerals integrate Magnetic’s assets post-acquisition?
- What impact will the scaleback arrangements have on shareholder returns?
- Will the Genesis share price reflect the acquisition’s strategic value once trading normalises?