135 Exchange of securities for those in another company.U.K.
(1)Subsection (3) below has effect where a company (“company A”) issues shares or debentures to a person in exchange for shares in or debentures of another company (“company B”) and—
(a)company A holds, or in consequence of the exchange will hold, more than one-quarter of the ordinary share capital (as defined in section 832(1) of the Taxes Act) of company B, or
(b)company A issues the shares or debentures in exchange for shares as the result of a general offer—
(i)which is made to members of company B or any class of them (with or without exceptions for persons connected with company A), and
(ii)which is made in the first instance on a condition such that if it were satisfied company A would have control of company B [F1or
(c)company A holds, or in consequence of the exchange will hold, the greater part of the voting power in company B]
(2)Subsection (3) below also has effect where under section 136 persons are to be treated as exchanging shares or debentures held by them in consequence of the arrangement there mentioned.
(3)Subject to sections 137 and 138, sections 127 to 131 shall apply with any necessary adaptations as if the 2 companies mentioned in subsection (1) above or, as the case may be, in section 136 were the same company and the exchange were a reorganisation of its share capital.
Textual Amendments
F1Words in s. 135(1) inserted (retrosp.) by 1992 c. 48, s. 35(1)