Platinum Asia Details Special Dividend and Share Swap Ahead of August Restructure
Platinum Asia Investments has released detailed examples illustrating how its upcoming special dividend and share-for-unit exchange will be calculated as part of a major restructure scheduled for late August.
- Special dividend approximates retained earnings adjusted for restructure costs
- Shareholders to exchange ASX-listed shares for units in Platinum Asia Fund Complex ETF
- Worked examples based on 31 July 2025 valuations provided for clarity
- Special dividend expected to be around 20 cents per share, partially franked
- Final dividend and unit issuance values to be confirmed on scheme implementation date
Context of the Restructure
Platinum Asia Investments Limited (ASX – PAI) is preparing for a significant corporate restructure via a scheme of arrangement, expected to take effect around 25 August 2025. This move will see existing shareholders exchanging their ASX-listed shares for fully paid units in the Platinum Asia Fund Complex ETF (ASX – PAXX), marking a strategic shift in the company’s investment structure.
Special Dividend Explained
Central to the restructure is a special dividend, designed to distribute the company’s retained earnings to shareholders before the share-for-unit swap. The company has provided worked examples based on its most recent net tangible asset (NTA) valuation as of 31 July 2025. In this example, the special dividend would be approximately 19.9 cents per share, reflecting retained earnings of about 20.2 cents per share adjusted for restructure-related costs and expenses.
This dividend is expected to be around 77% franked at the prevailing company tax rate of 25%, offering shareholders a tax-efficient payout. However, the company notes that if the tax rate changes before implementation, the franking profile and dividend amount could be affected.
Scheme Consideration and Unit Issuance
Alongside the dividend, shareholders will receive new units in the Platinum Asia Fund Complex ETF as consideration for their shares. The worked example shows that a shareholder with 1,000 shares would receive approximately 183 new units, based on the ratio of the company’s post-tax NTA (adjusted for the special dividend and costs) to the fund’s net asset value per unit.
This exchange ratio is subject to rounding rules and final valuation on the implementation date. The company emphasizes that these examples are illustrative and not indicative of the final numbers, which will be confirmed closer to the scheme’s effective date.
Implications for Shareholders
For investors, this restructure represents a transition from holding shares in a listed investment company to units in an exchange-traded fund, potentially offering different liquidity and tax characteristics. The special dividend provides an immediate return of retained earnings, while the unit issuance aligns shareholders with the underlying fund’s performance going forward.
Shareholders are advised to consider the tax implications and the impact of any changes in corporate tax rates on their returns. The company has committed to providing final details on the special dividend and scheme consideration on the implementation date, ensuring transparency and clarity.
Bottom Line?
As Platinum Asia moves closer to finalising its restructure, investors will be watching closely for the confirmed dividend and unit swap values that will shape their future holdings.
Questions in the middle?
- How will potential changes in corporate tax rates before implementation affect the final dividend and franking credits?
- What are the liquidity and cost implications for shareholders transitioning from shares to ETF units?
- How might market conditions between now and the scheme implementation date influence the net asset values used in calculations?
