Page 20 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Illustration 3

• Q Ltd holds 15% of the voting rights in M Ltd, whose

relevant activities are directed through voting rights.

• In addition, Q Ltd holds convertible debentures in M Ltd that

are out of the money (but not deeply so) and convertible at

a fixed price. Should Q Ltd convert its debentures, it would

hold 65% of the voting rights in total and realise significant

synergies from the power these voting rights would grant.

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