Magnetic Resources Shareholders Receive A$445 Million in Genesis Deal
Magnetic Resources NL has completed its takeover by Genesis Minerals, with shares transferred and consideration paid. Magnetic will delist from the ASX on 23 June 2026.
- Scheme of arrangement fully executed
- Shareholders received cash and Genesis shares
- Cash scaleback applied to some elections
- Magnetic shares to be delisted 23 June
- Over 2,100 shareholders involved in the scheme
Scheme of Arrangement Fully Executed
Magnetic Resources NL (ASX:MAU) has officially completed its scheme of arrangement acquisition by Genesis Minerals Limited (ASX:GMD). Following shareholder approval on 3 June and Supreme Court sanction on 9 June, all Magnetic shares have now transferred to Genesis. Shareholders received their scheme consideration on 22 June, marking the formal conclusion of the transaction.
Complex Consideration Mix and Scaleback Mechanism
The scheme consideration was paid based on shareholder elections made by the 15 June record date. Shareholders could elect among Default Consideration, Maximum Cash Consideration, or Maximum Scrip Consideration. Due to demand exceeding available cash, a scaleback mechanism was applied to those electing the Maximum Cash option, resulting in a partial cash and partial scrip payout. This adjustment did not affect shareholders choosing the Maximum Scrip or Default Considerations.
Specifically, about 25.1 million new Genesis shares and A$428 million in cash were distributed for ordinary Magnetic shares, spread across 2,175 shareholders. For contributing shares, nearly 2.9 million new Genesis shares and A$16.9 million cash were paid to 1,658 shareholders. Foreign shareholders and holders of unmarketable parcels received cash consideration without scaleback.
Delisting Set for 23 June
Magnetic Resources will be removed from the ASX official list effective from the close of trading on Tuesday, 23 June 2026. This delisting follows the successful scheme implementation and the transfer of all shares to Genesis. The transition completes Magnetic’s chapter as a standalone listed entity, folding its assets and operations into Genesis Minerals.
Implications for Shareholders and Market
The scaleback arrangement highlights the premium on cash consideration in the deal, reflecting shareholder preferences and available liquidity constraints. Shareholders who opted for maximum cash received a mix of cash and shares, balancing immediate liquidity with ongoing exposure to Genesis. The Default Consideration provided a baseline payout for those who did not make an election or were foreign/unmarketable parcel holders.
Genesis Minerals now consolidates Magnetic’s resources and shareholder base, potentially strengthening its position in Western Australia's mineral exploration sector. The market will be watching Genesis’s share performance and integration strategy closely in the coming months.
Bottom Line?
Magnetic’s delisting marks a clear end to its independent chapter, while Genesis inherits a broadened shareholder base and resource portfolio amid a complex cash-scrip payout mix.
Questions in the middle?
- How will Genesis Minerals integrate Magnetic’s assets operationally and financially?
- What impact will the scaleback mechanism have on shareholder sentiment and future capital raising?
- Will Genesis’s share price reflect the premium paid and the expanded resource base post-acquisition?
