Peak Rare Earths (ASX:PEK) Shares Jump 24.6% on Revised Shenghe Acquisition Proposal

Sonal Goyal

05 September 2025 01:08 PM AEST

Peak Rare Earths (ASX:PEK) Shares Jump 24.6% on Revised Shenghe Acquisition Proposal

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Highlights

PEK share price rose 24.6% to AUD 0.418 per share on 5 September 2025.

Shenghe raised its takeover offer to AUD 195 million, valuing Peak shares at no less than AUD 0.443 per share.

The revised offer represents a 32% premium to the last close and a 269% premium to pre-scheme trading levels.

Peak Rare Earths Limited (ASX:PEK) has announced that Shenghe Resources (Singapore) Pte. Ltd. will increase the cash consideration payable under its proposed scheme of arrangement to acquire 100% of Peak. The revised proposal now values Peak at approximately AUD 195 million.

Under the revised terms, Scheme Shareholders will receive not less than AUD 0.443 in cash per Peak share if the scheme becomes effective. This represents an uplift from the original scheme consideration announced in May 2025.

Premiums to Shareholders

The increased consideration under the Revised Scheme Proposal offers shareholders:

A ~32% premium to the closing price of AUD 0.335 on 4 September 2025, the last trading day before the announcement.
A ~269% premium to the closing price of AUD 0.12 on 9 May 2025, the last trading day before the original scheme was announced.
A ~23% increase in the minimum cash consideration compared with the original proposal.

Shenghe confirmed that this is its best and final proposal for the scheme consideration, with no further increase expected unless a competing offer for Peak emerges.

Implementation and Voting

The Scheme Implementation Deed has been amended to reflect the revised proposal. Peak shareholders who have already submitted proxy forms remain valid unless revoked, although replacement forms can be submitted if shareholders wish to change their instructions.

The Peak Independent Board Committee has unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an independent expert confirming that the transaction is in the best interests of shareholders not associated with Shenghe. Each committee member has also confirmed their intention to vote all shares under their control in favour of the scheme under these conditions.

Share Price Movement

Following the announcement, Peak’s share price climbed 24.6% during the trading session on 5 September 2025, closing at AUD 0.418 per share.

Next Steps

Shareholders will have the opportunity to vote on the scheme at the upcoming meeting. If approved and implemented, the scheme will see Peak become wholly owned by Shenghe, providing shareholders with the revised cash consideration.

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