Nepean Corp and Warren Inc own 80 and 20 respectively
Nepean Corp. and Warren Inc. own 80% and 20%, respectively, of the common shares that carry voting rights at a general meeting of shareholders of Osaka Enterprises. Nepean sells half of its interest to Warren and buys call options from Warren that are exercisable at any time at a premium to the market price when issued, and if exercised would give Nepean its original 80% ownership interest and voting rights. At December 31, 2013, the options are out of the money.
Discuss whether Nepean is the parent of Osaka.
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