Sep/Dec17, Q1, Conejo Co

The proposal 1 of the question was this:

Proposal 1: Either buy back equity shares at their current share price, which would be cancelled after they have been repurchased.

While doing part b(iii) answer, it said this:

Shares repurchased as follows: $1 x 120m shares deducted from share capital and $10 x 120m shares deducted from reserves. $1,320m, consisting of $11 x 120m shares, added to non-current liabilities.

I did not understand why are we taking 120m and not 400m equity shares. where did 120m come from?