[catherineb]

I’m afraid I don’t understand either why the answers suggest that the reorganisation meets the criteria for the following reasons:
Decany (the original parent) has not established a new entity as its parent but has rather sold its investment in a wholly owned subsidiary (Rant) to another wholly owned subsidiary Ceed. Therefore Decany remains the ultimate holding company.
Also the criteria states that the new parent achieves control by exchanging equity instruments in exchange for the equity instruments of the original parent. In this case Ceed has issued cash consideration in return for shares in Rant.
Please can you help as I have spent considerable time trying to understand the answers to this question.

[Author]

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