Question
WindPower Ltd (WindPower) specialises in the design, construction and installation of wind turbines. GreenSolar acquired a controlling 70% interest in WindPower on 1 October 2018.
WindPower Ltd ("WindPower") specialises in the design, construction and installation of wind turbines. GreenSolar acquired a controlling 70% interest in WindPower on 1 October 2018. WindPower's identifiable assets and liabilities were fairly valued on that date. WindPower's profit after tax for its 2020 financial year was R635 000 in its separate financial statements. WindPower did not declare any dividends during the current financial year
Evaluate the impact that each restructuring option will have on GreenSolar's degree of influence over Energy SA. Recommend which option should be selected to achieve GreenSolar's objective of transferring more than 50% ownership and retaining control over Energy SA.
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