Written by The Edge Financial Daily

KUALA LUMPUR: LION DIVERSIFIED HOLDINGS BHD [] (LDHB) clarified that it did not consolidate the results of LION CORPORATION BHD [] (LCB) into its accounts, as its interests in the latter would be diluted to below 50% upon the conversion of financial instruments in LCB held by other parties.
In an announcement here today, LDHB said despite it holding a 59% stake in LCB, it has continued to treat LCB as an associated company, in accordance to Financial Reporting Standard 127: Consolidated and Separate Financial Statements, mainly due to the issuing of redeemable convertible secured loan stocks and warrants by LCB to other parties that could eventually dilute its interests in LCB to below 50%.
LDHB's clarification came about after The Edge weekly reported that the company didn't consolidate the results of LCB for the financial period ended June 30, 2009, despite the fact that it now owned 59.04% of LCB after having converted RM900 million worth of LCB bonds into shares on Feb 27, 2009. 
What an excuse! So easy to be diluted and when ?


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