Southern Cross Gold Scheme Approved: SXG Shares Halt, SX2 CDIs to Trade
The Supreme Court of New South Wales has approved the scheme of arrangement for Southern Cross Gold Consolidated Ltd to acquire all remaining shares of Southern Cross Gold Ltd, setting the stage for a significant ownership consolidation and ASX trading changes.
- Supreme Court of NSW approves Southern Cross Gold takeover scheme
- Southern Cross Gold Consolidated Ltd to acquire 100% of SXG shares
- Scheme becomes effective upon ASIC lodgement on 15 January 2025
- SXG shares to be suspended from ASX trading post-approval
- Southern Cross Gold Consolidated Ltd CDIs to commence ASX trading under code SX2
Court Approval Marks a Turning Point
Southern Cross Gold Ltd (ASX:SXG) has reached a pivotal milestone with the Supreme Court of New South Wales granting approval for the scheme of arrangement that will see Southern Cross Gold Consolidated Ltd (TSXV:SXGC) acquire all remaining shares it does not already own. This court-sanctioned transaction, announced on 14 January 2025, effectively paves the way for a full consolidation of ownership under the Canadian-listed entity.
The approval is a critical regulatory hurdle, confirming the legal framework for the acquisition and setting in motion a series of key dates that will reshape the trading landscape for Southern Cross Gold shareholders.
From ASX Suspension to New Trading Codes
Following the court's approval, Southern Cross Gold Ltd plans to lodge the court orders with the Australian Securities and Investments Commission (ASIC) on 15 January 2025. This lodgement will mark the scheme's effective date, triggering the suspension of SXG shares from trading on the ASX at the close of the same day.
Investors should note that Southern Cross Gold Consolidated Ltd's CHESS Depositary Interests (CDIs) will begin trading on the ASX on a deferred settlement basis under the ticker SX2 starting 16 January 2025. Normal settlement trading for these CDIs is scheduled to commence on 28 January 2025, signaling a full transition of market activity to the consolidated entity.
Implications for Shareholders and Market Structure
The scheme record date is set for 7:00pm on 17 January 2025, which will determine shareholder entitlements to the scheme consideration. This timeline underscores the swift progression from court approval to implementation, leaving shareholders with a narrow window to adjust their positions.
While the announcement does not reiterate the financial terms of the scheme, the consolidation under Southern Cross Gold Consolidated Ltd is expected to streamline corporate governance and potentially enhance access to capital markets through the TSXV-listed parent company.
Looking Ahead
As the scheme moves towards implementation on 24 January 2025, market participants will be closely watching the trading performance of the new SX2 CDIs and the broader strategic direction of the consolidated Southern Cross Gold group. The transition marks a significant chapter for the company, with potential implications for liquidity, shareholder value, and cross-border investor engagement.
Bottom Line?
The court’s approval unlocks a new ownership era for Southern Cross Gold, but the market will be watching closely as trading shifts and integration unfolds.
Questions in the middle?
- How will the market value Southern Cross Gold Consolidated Ltd’s CDIs compared to the former SXG shares?
- What strategic benefits will the consolidation under the Canadian entity deliver to shareholders?
- Are there any anticipated regulatory or operational challenges post-implementation?
