39(1)This paragraph applies to a scheme that makes provision under paragraph 38 (exchange of options on company reorganisation).U.K.
(2)The scheme must require the new share options to relate to shares in a company which—
(a)is different from the company whose shares are subject to the old options, and
(b)is either the acquiring company itself or some other company within sub-paragraph (b) or (c) of paragraph 18 (shares must be ordinary shares of certain companies), namely—
(i)a company which has control of the scheme organiser, or
(ii)a company which is, or has control of a company which is, a member of a consortium owning either the scheme organiser or a company having control of the scheme organiser.
For this purpose the control in question may be through the medium of the acquiring company.
(3)The scheme must also require the new share options to be equivalent to the old options.
(4)For the new options to be regarded as equivalent to the old options—
(a)the shares to which they relate must meet the conditions in paragraphs 18 to 22 (types of share that may be used),
(b)they must be exercisable in the same manner as the old options and subject to the provisions of the scheme as it had effect immediately before the release of the old options,
(c)the total market value of the shares subject to the old options immediately before the release of those options by the participant must equal the total market value, immediately after the grant of the new options to the participant, of the shares subject to those options, and
(d)the total amount payable by the participant for the acquisition of shares under the new options must be equal to the total amount that would have been so payable under the old options.
(5)For the purposes of the SAYE code, new share options granted under the terms of a provision included in a scheme under paragraph 38 are to be treated as having been granted at the time when the corresponding old options were granted.
(6)This also applies for the purposes of the provisions of the scheme in their operation, after the grant of the new options, by virtue of a condition complying with sub-paragraph (4)(b).