The scheme involves a merger where under the scheme—
the undertaking, property and liabilities of one or more public companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to another existing public company (a "merger by absorption"), or
the undertaking, property and liabilities of two or more public companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to a new company, whether or not a public company, (a "merger by formation of a new company").
References in this Part to "the merging companies" are—
in relation to a merger by absorption, to the transferor and transferee companies;
in relation to a merger by formation of a new company, to the transferor companies.