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e.g. from $100 10% loan note for every 1000shares a parent(p) purchased from subsidiary.
the share is 2 is to five shares of s.and parent shares is 75%Information is too vague to make a calculation. Eg. If subsidiary have 10000 shares and our share price at fair value is $2. Therefore 75% of 10000 shares=7500 shares. So for every five shares of 7500, we will issue two of our shares. 7500/5=1500 shares. So parent company have to issue out 1500*2=3000 shares at $2 per share which is 3000*2=$6000. Next we deal with the loan notes, we look at the number of shares we brought which is 7500. For every 1000 shares, the parent company will issue loan note of $100. 7500/1000=7.5, 7.5*100=750. Total consideration is $6000+$750=$6750. This is based on my subjective understanding, i advise you just take it for reference purposes and develop your own understanding.
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