Magnetic Shares Suspend Trading Ahead of Genesis Acquisition
The Supreme Court of Western Australia has approved the scheme of arrangement under which Genesis Minerals will acquire Magnetic Resources, triggering trading suspension and setting a clear timetable for share transfers and new listings.
- Supreme Court approves Magnetic scheme
- Magnetic shares suspended from 10 June
- Scheme consideration payable 22 June
- Record date set for 15 June
- Genesis shares to start trading 23 June
Court Approval Triggers Scheme Effectiveness
Magnetic Resources NL (ASX:MAU) has reached a critical milestone in its takeover by Genesis Minerals Limited (ASX:GMD) with the Supreme Court of Western Australia granting formal approval to the scheme of arrangement. This judicial endorsement, made on 9 June 2026, marks the scheme as effective and clears the path for the acquisition to proceed.
The court orders, lodged with the Australian Securities and Investments Commission on 10 June, confirm that Magnetic shareholders will be bound by the terms of the scheme, which were detailed in the Scheme Booklet issued in April. The approval exempts Magnetic from certain compliance provisions under the Corporations Act, facilitating a streamlined implementation.
Trading Suspension and Shareholder Timetable
Following the court’s decision, Magnetic shares are expected to be suspended from trading on the ASX at the close of business on 10 June 2026. This suspension signals the winding down of Magnetic’s independent listing ahead of the acquisition’s completion.
Key dates are now set: the record date for determining eligible shareholders is 5:00pm AWST on 15 June, with the scheme consideration to be distributed on 22 June. Subsequently, Genesis Minerals shares, which will be issued to Magnetic shareholders as part of the consideration, are scheduled to commence trading on 23 June 2026. This sequence ensures a smooth transition of ownership and market presence.
Shareholder Consideration and Scaleback Arrangements
Magnetic shareholders will receive the scheme consideration according to their election choices and subject to any applicable scaleback arrangements. While this announcement does not disclose the specific financial terms, previous communications outlined a mix of cash and scrip options, with scaleback mechanisms applied to manage excess cash election demand.
The orderly timetable and clear legal approval provide certainty to shareholders awaiting their entitlements and to the market anticipating the consolidation of Magnetic’s assets under Genesis Minerals.
Bottom Line?
As Magnetic shares suspend and Genesis prepares to issue new stock, investor focus will turn to the smooth execution of the scheme and the integration steps that follow.
Questions in the middle?
- How will the scaleback arrangements affect shareholder returns?
- What impact will the acquisition have on Genesis Minerals’ strategic positioning?
- Could market conditions around the implementation date influence the trading debut of Genesis shares?
