Computation of percentage ratio
The following question is based on similar facts as set out in Question 10.12 above, except that in this instance, XY Bhd has negative net assets. All the relevant percentage ratios are found to be inapplicable or produce anomalous results except for the Market Cap Test. In light of this, will XY Bhd be required to comply with Part D, Chapter 10 of the Main LR in relation to the Land Transaction where XY Bhd pays for the land in cash?
Pursuant to paragraph
10.03(8) of the Main LR, the Market Cap Test will only be applicable if –
the Land Transaction involves consideration in the form of listed shares; or
all the other
percentage ratios produce anomalous results or are inapplicable.
In this respect, as all the other relevant percentage ratios are inapplicable or produce anomalous results, even if XY Bhd pays for the land wholly in cash, XY Bhd will have to ensure that the relevant provisions of Part D, Chapter 10 of the Main LR are complied with.