Platinum Asia’s Restructure Hinges on Shareholder Approval and Dividend Details
Platinum Asia Investments has released illustrative calculations for its Special Dividend and Scheme consideration tied to a proposed restructure, offering shareholders clarity ahead of a pivotal vote.
- Special Dividend linked to retained earnings and restructure costs
- Dividend reinvestment plan suspended pending Scheme outcome
- Worked examples show potential payout and unit exchange ratios
- Final dividend and Scheme details to be confirmed before 25 August
- Scheme approval remains subject to shareholder vote
Context of the Restructure
Platinum Asia Investments Limited (ASX, PAI) has provided shareholders with detailed worked examples illustrating how the Special Dividend and Scheme consideration will be calculated as part of its proposed restructure. This restructure is planned to be implemented through a scheme of arrangement, a legal process requiring shareholder approval and regulatory compliance.
The company’s announcement follows earlier communications in July 2025, aiming to clarify the financial mechanics underpinning the transaction and to set expectations for investors ahead of the Scheme meeting scheduled for August.
Special Dividend Mechanics and Impact
The Special Dividend will be paid only if the Scheme is approved and implemented. It is designed to distribute the company’s retained earnings, adjusted for restructure-related costs and expenses, to shareholders. The worked example, based on data as of 30 June 2025, suggests a dividend of approximately 14.57 cents per share, reflecting retained earnings of 14.80 cents per share less estimated costs.
Importantly, the dividend will be partially franked, around 63.7% in the example, meaning shareholders will receive some tax credits, but it will not be fully franked. The company has also suspended its dividend reinvestment plan immediately, which will remain inactive for the Special Dividend, pending the Scheme’s outcome.
Scheme Consideration Explained
Under the Scheme, shareholders will exchange their existing shares for new units in the Platinum Asia Fund Complex ETF (ASX, PAXX). The number of new units issued will depend on the net tangible assets (NTA) of both the company and the fund at the Valuation Date, currently expected to be 22 August 2025.
The worked example shows that a shareholder with 1,000 shares might receive 195 new units, with an aggregate value closely matching the post-tax NTA of their original shares. This exchange ratio is subject to rounding rules and final valuations, which will be confirmed prior to the Scheme’s implementation.
Looking Ahead
Final figures for the Special Dividend and Scheme consideration will be announced before 10am on the day the Scheme is implemented, currently expected on 25 August 2025. Shareholders are encouraged to review these updates carefully, as the Scheme’s approval is not guaranteed and the dividend will not be paid if the Scheme does not proceed.
Platinum Asia’s Board has emphasized the importance of ensuring that the restructure does not adversely impact existing unitholders of the Fund, reflecting a balanced approach to managing interests across stakeholders.
Bottom Line?
As the August vote approaches, shareholders must weigh the proposed dividend and unit exchange carefully amid lingering uncertainties.
Questions in the middle?
- What will be the final value and franking level of the Special Dividend on implementation day?
- How might the suspension of the dividend reinvestment plan affect shareholder returns if the Scheme fails?
- What are the potential market impacts on share and unit prices post-Scheme implementation?
