(1) For the purposes of this section –
“asset-for-share transaction” means any transaction-
(a)
(i) in terms of which a person disposes of an asset (other than an asset which constitutes a restraint of trade or personal goodwill), the market value of which is equal to or exceeds-
(aa) in the case of an asset held as a capital asset, the base cost of that asset on the date of that disposal; or
(bb) in the case of an asset held as trading stock, the amount taken into account in respect of that asset in terms of section 11(a) or 22(1) or (2),
to a company which is a resident, in exchange for the issue of an equity share in that company and that person-
(A) at the close of the day on which that asset is disposed of, holds a qualifying interest in that company; or
(B) is a natural person who will be engaged on a full-time basis in the business of that company, or a controlled group company in relation to that company, of rendering a service; and
(ii) as a result of which that company acquires that asset from that person-
(aa) as trading stock, where that person holds it as trading stock;
(bb) as a capital asset, where that person holds it as a capital asset; or
(cc) as trading stock, where that person holds it as a capital asset and that company and that person do not form part of the same group of companies:
: Provided that this subparagraph does not apply in respect of any transaction which meets the requirements of subparagraph (i) in terms of which a person disposes of-
(i) an equity share in a listed company or in a portfolio of a collective investment scheme in securities or in a portfolio of a hedge fund collective investment scheme to any other company and after that disposal, together with any other transaction that is concluded-
(aa) on the same terms as that transaction; and
(bb) within a period of 90 days after that disposal,
that other company holds-
(A) at least 35 per cent of the equity shares of that listed company or portfolio; or
(B) at least 25 per cent of the equity shares of that listed company or portfolio if no person other than that other company holds an equal or greater number of equity shares in the listed company or portfolio; or
[Subparagraph (B) substituted by section 25(1)(a) of Act 20 of 2021]
(ii) an asset to a portfolio of a hedge fund collective investment scheme; or
[Proviso to subparagraph (ii) substituted by section 62 of Act 25 of 2015 effective on 1 April 2015]
(b) in terms of which a person that is a company disposes of an asset that constitutes an equity share held by that person in a foreign company as a capital asset, the market value of which is equal to or exceeds the base cost of that equity share on the date of that disposal, to another foreign company in exchange for the issue of an equity share in that other foreign company and-
(i) immediately before the asset is disposed of in terms of that transaction-
(aa) that person and the other foreign company form part of the same group of companies (as defined in section 1); and
(bb) the other foreign company is a controlled foreign company in relation to any company that is a resident and that forms part of that group of companies; and
(ii) at the close of the day on which the asset is disposed of in terms of that transaction-
(aa) more than 50 per cent of the equity shares in the foreign company are directly or indirectly held by a resident (whether alone or together with any company forming part of the same group of companies as that resident); or
(bb) at least 70 per cent of the equity shares in that other foreign company are directly or indirectly held by a resident (whether alone or together with any other company forming part of the same group of companies as that resident);