Peak Rare Earths’ A$0.443 cash exit: What Shenghe’s takeover, trading suspension, and delisting really mean for investors

Peak Rare Earths Limited (ASX: PEK) has reached the final chapter of its public market story. The Australian-listed rare earths developer confirmed that its scheme of arrangement with Shenghe Resources (Singapore) Pte. Ltd. has become legally effective, paving the way for remaining shareholders to exit at A$0.443 per share in cash. With court approval secured and orders lodged with regulators, Peak Rare Earths said trading of its shares would be suspended at the close of 19 September, ahead of delisting in early October and a scheduled cash distribution on 30 September 2025.

The deal values the company at A$195 million and brings to a close years of speculation around the future of its flagship Ngualla rare earth project in Tanzania. For investors, the scheme represents both closure and a clean exit: no lingering scrip, no conditional payments outside a standard settlement cycle, and a cash floor that has already converged with the traded price.

Why did Peak Rare Earths’ scheme become effective, and what does suspension mean for holders?

The confirmation follows approval from the Supreme Court of New South Wales, which granted the necessary orders to make the scheme legally binding. Peak Rare Earths lodged those orders with the Australian Securities and Investments Commission, a procedural step that activated the effective status of the scheme. The company laid out a straightforward timetable: shares suspended on 19 September, record date on 23 September, payment to shareholders on 30 September, and delisting around 1 October.

For investors still on the register, this means there is no further trading opportunity. Entitlements are fixed, the shares are effectively frozen, and settlement is now an administrative matter. The market has priced in the certainty, with Peak Rare Earths closing near the offer price before suspension, leaving little room for arbitrage.

How was the A$0.443 per share scheme price calculated, and how does it compare to earlier guidance?

The final figure of A$0.443 per share was derived from dividing the total consideration of A$195 million by the number of shares on issue at the scheme record date, around 440 million. Earlier communications in May 2025 had signalled a minimum per-share outcome of approximately A$0.359, based on a lower consideration pool tied to entitlement fundraising. That floor represented nearly a 200% premium to the pre-announcement trading price, sparking a strong rerating of Peak Rare Earths stock.

As events unfolded, a combination of fundraising mechanics and deal finalization pushed the final number higher. By September, the scheme crystallized at the headline A$0.443 per share, leaving investors with a defined, cash-backed exit value.

Why is Shenghe Resources pursuing full control of Peak Rare Earths and how does the Ngualla project fit into its global rare earths strategy?

For Shenghe Resources, the acquisition was as much about integration as it was about valuation. Through its Singapore arm, Shenghe already held just under 20% of Peak Rare Earths and had binding rights to purchase all of the company’s rare earth concentrate and at least half of its downstream oxides from the Ngualla project. By moving to full ownership, Shenghe eliminates contractual complexities, aligns project development timelines with its global supply chain, and secures direct control over a deposit that had been one of Africa’s most closely watched critical minerals assets.

The acquisition also reflects a broader trend in the rare earths sector: vertically integrated players tightening their grip on upstream supply to protect downstream processing and manufacturing chains. With growing geopolitical scrutiny of critical minerals, Shenghe’s move consolidates its global reach and ensures it can dictate both pricing and flow from Ngualla.

Why is the Ngualla rare earth project considered a cornerstone asset in the global supply chain and what role does Tanzania’s stake play in its future?

Ngualla, located in Tanzania, is considered one of the world’s higher-quality undeveloped rare earth deposits. Peak Rare Earths held an effective 84% stake prior to the scheme, with the Tanzanian government retaining a free-carried interest through local project companies. That structure built in sovereign alignment, helping smooth regulatory approvals and ensuring the host nation had an economic stake in the project’s development.

For years, Peak Rare Earths struggled to balance financing needs, development risk, and market volatility. Previous strategies included joint ventures and staged financing, but these proved challenging amid shifting investor sentiment. The takeover by Shenghe removes uncertainty and places Ngualla firmly in the hands of a company with the balance sheet, technical expertise, and marketing channels to push the project forward.

For Tanzania, this marks the arrival of a global partner with the capacity to deliver large-scale mining and processing infrastructure. Government ministries have already expressed support, framing the deal as a step toward establishing the country as a reliable supplier in the global rare earths chain.

How has the market interpreted Peak Rare Earths’ final days as a listed entity?

The share price tells the story. Over the past year, Peak Rare Earths delivered a return of more than 150%, largely driven by deal certainty rather than project milestones. Into suspension, the stock hovered around A$0.44, almost perfectly aligned with the scheme price. That indicates arbitrageurs had already closed their positions, while long-only investors had little incentive to trade away their entitlements.

Liquidity in the last days reflected index funds and quant strategies exiting ahead of delisting, while event-driven funds locked in their arbitrage gains. Sentiment, in short, has been neutral to positive: there was little speculation of a counter-bid, and the court’s approval signaled the path to closure was clear.

How did Peak Rare Earths’ entitlement offer at A$0.10 per share impact shareholder value and scheme consideration under the Shenghe takeover?

Alongside the scheme, Peak Rare Earths conducted a non-renounceable entitlement offer at A$0.10 per share. While non-underwritten, Shenghe committed to taking up its allocation in full. The proceeds were intended to fund short-term operational requirements and maintain project momentum ahead of the scheme’s completion.

The mechanics meant any new shares issued under the offer would be absorbed into the acquisition, slightly adjusting the per-share consideration calculation. While it created minor dilution, the higher overall scheme consideration offset those effects, and shareholders ultimately benefited from a higher per-share outcome than initially signposted.

What are the investment implications of Peak Rare Earths’ A$0.443 cash exit and should shareholders buy, sell, or hold during the Shenghe takeover?

For shareholders, there is no real decision left. With trading suspended and the share price fully aligned with the offer, the rational approach is to simply wait for settlement. The A$0.443 consideration represents a locked-in value, and attempting to capture liquidity beforehand carried little economic benefit.

From an investment strategy perspective, the real question is what to do with the cash once it arrives. Investors who wanted exposure to rare earth development risk will no longer find it in Peak Rare Earths, now destined to be a private subsidiary of Shenghe. Choices include pivoting into other ASX-listed rare earth developers, diversifying into global producers, or shifting toward integrated players like Shenghe itself—though the latter is not ASX-listed.

What lies ahead for the Ngualla project under Shenghe’s ownership?

With public shareholders cashed out, the value story of Ngualla transitions entirely to Shenghe. Analysts expect the project to move faster under a single sponsor, with financing and offtake aligned to Shenghe’s global needs rather than the demands of a small-cap listed vehicle.

That means Ngualla may progress to construction sooner, supported by Shenghe’s balance sheet and its established role in China’s processing ecosystem. For Tanzania, the project is likely to become a flagship example of public–private collaboration in critical minerals, with potential for downstream industrial development in-country.

For investors, however, this upside is no longer accessible through Peak Rare Earths. The scheme effectively crystallizes value today, while future gains accrue to Shenghe.

What does Peak Rare Earths’ exit signal about the rare earths sector and critical minerals investment?

The story underscores a pattern that has played out across the critical minerals space: small-cap explorers and developers can generate value through discovery and de-risking, but ultimately the cost of capital and supply chain certainty belong to larger, integrated players. For Peak Rare Earths, the premium takeover represents a validation of years of geological work at Ngualla. For shareholders, the cash exit is an efficient and timely conclusion.

At the sectoral level, the move reflects consolidation. As governments in the U.S., Europe, and Asia push for supply chain security, integrated players like Shenghe are locking down assets. For retail and institutional investors, this means rare earths exposure will increasingly come via larger, vertically integrated groups, unless they are willing to hold small-cap explorers through the long and uncertain development cycles.

How has Peak Rare Earths’ stock performed in the past year and what does investor sentiment reveal about the Shenghe takeover?

Peak Rare Earths’ one-year total return sits at approximately 157%, with shares moving from A$0.079 at the start of the period to A$0.443 at suspension. That profile captures both the volatility and the payoff of event-driven mining investment. Institutional flows in the final stretch were dominated by arbitrage closure and index exits, while retail sentiment leaned toward holding into settlement.

The absence of a rival bid and the smooth court approval process reinforced a sense of finality. Analysts broadly viewed the scheme as shareholder-friendly, given the premium and the certainty of cash settlement.