Shenghe to Acquire Peak Rare Earths at Minimum $0.443 per Share
The Supreme Court of New South Wales has approved Shenghe Resources’ acquisition scheme for Peak Rare Earths, setting the stage for a significant ownership change and share suspension on the ASX.
- Supreme Court approves Scheme of Arrangement for Shenghe’s acquisition
- Cash consideration set at no less than $0.443 per Peak share
- Scheme becomes legally effective on 19 September 2025
- Peak shares to be suspended from ASX trading the same day
- Record date and payment scheduled for late September
Court Approval Marks Key Milestone
Peak Rare Earths Limited has reached a pivotal moment in its acquisition journey, with the Supreme Court of New South Wales granting formal approval to the Scheme of Arrangement proposed by Shenghe Resources (Singapore) Pte. Ltd. This legal endorsement clears the final regulatory hurdle, allowing Shenghe to proceed with acquiring all remaining shares in Peak that it does not already own.
Details of the Acquisition Scheme
The acquisition involves a cash offer of no less than $0.443 per Peak share, a figure that provides a clear valuation benchmark for shareholders. With the court’s approval effective from 19 September 2025, Peak’s shares will be suspended from trading on the ASX at the close of that day, signaling the transition phase from public trading to private ownership under Shenghe’s control.
Timetable and Next Steps
Following the effective date, the record date is set for 23 September 2025, determining which shareholders are entitled to receive the cash consideration. The implementation date, when payment will be made and shares transferred to Shenghe, is scheduled for 30 September 2025. Peak has committed to keeping shareholders informed of any material developments as the process unfolds.
Implications for Shareholders and Market
For Peak shareholders, this acquisition represents a definitive exit opportunity at a fixed cash price, removing the uncertainties of market fluctuations. Meanwhile, the suspension of trading on the ASX marks the end of Peak’s public listing, a significant shift for investors and market watchers alike. Shenghe’s consolidation of ownership could also influence the strategic direction of Peak’s rare earths assets, potentially aligning them more closely with Shenghe’s broader resource portfolio.
Looking Ahead
As the Scheme moves from approval to implementation, attention will turn to the smooth execution of payment and share transfer. The market will be watching closely for any unexpected delays or shareholder responses that could impact the timeline. This acquisition underscores the ongoing consolidation trends within the rare earths sector, driven by strategic resource positioning and global supply considerations.
Bottom Line?
With court approval secured, Peak Rare Earths’ takeover by Shenghe enters its final, decisive phase.
Questions in the middle?
- Will any minority shareholders challenge the Scheme or seek a higher price?
- How will Shenghe integrate Peak’s assets into its existing operations?
- What impact will the acquisition have on Peak’s rare earths project development timelines?
