Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Notes to the financial statements  for the financial year ended 31 March 2014  continued  Consolidated 2014  $m  Consolidated 2013  $m  Company  2014  $m  Company  2013  $m  Note 28  Contributed equity  continued  Exchangeable shares  Opening balance of 604,206 (1 April 2012: 1,759,522)  exchangeable shares  36  82  –  –  Issue of nil (31 March 2013: 38,118) exchangeable shares with  retention conditions at $50.80 per share, exchangeable to shares in  MGL on a one-for-one basis (1),(2) –  –  –  –  Retraction of 11,774 (31 March 2013: 379,687) exchangeable  shares at $80.30 per share, exchangeable to shares in MGL on a  one-for-one basis $_{(3)}$  (1)  (30)  –  –  Retraction of 136,066 (31 March 2013: 244,931) exchangeable  shares with retention conditions at $50.80 per share, exchangeable  to shares in MGL on a one-for-one basis  (8)  (12)  –  –  Cancellation of nil (31 March 2013: 32,060) exchangeable shares at  $80.30 per share  –  (3)  –  –  Cancellation of 8,804 (31 March 2013: 536,756) exchangeable  shares at $50.80 per share  –  (1)  –  –  Closing balance of 447,562 (31 March 2013: 604,206)  exchangeable shares  27  36  –  –  Consolidated 2014  $m  Consolidated 2013  $m  Company  2014  $m  Company  2013  $m  Contributed equity  5,112  5,907  7,852  8,642  (1) The exchangeable shares were issued by a subsidiary in August 2009 as consideration for the acquisition of Tristone Capital Global Inc.  and are classified as equity in accordance with AASB 132  Financial Instruments: Presentation* . They were eligible to be exchanged on a  one-for-one basis for shares in MGL (subject to staff trading restrictions) or cash at the Company’s discretion and will pay dividends  equal to MGL dividends during their legal life. However, subsequent to the approval of consolidation of Macquarie ordinary shares by  Macquarie's shareholders on 12 December 2013, the terms of the agreement have been modified to a 0.9438-for-one basis for shares  in MGL. The exchangeable shares must be exchanged by August 2019 and carry no MGL voting rights.  (2) The number of exchangeable shares was determined on 18 July 2012 pursuant to the settlement of the acquisition agreement with  Tristone employees. The corresponding prior period value of the exchangeable shares includes a fair value adjustment due to an earn  out mechanism.  (3) The exchangeable shares were issued by a subsidiary in November 2007 as consideration for the acquisition of Orion Financial Inc. and  are classified as equity in accordance with AASB 132 Financial Instruments: Presentation.As per terms of the original agreement, they  were eligible to be exchanged on a one-for-one basis for shares in MGL (subject to staff trading restrictions) or cash at the Company’s  discretion and will pay dividends equal to MGL dividends during their legal life. However, subsequent to the approval of consolidation of  Macquarie ordinary shares by Macquarie's shareholders on 12 December 2013, the terms of the agreement have been modified to a  0.9438-for-one basis for shares in MGL. The exchangeable shares will expire in November 2017 and carry no MGL voting rights.  *As per terms of the original agreement. 144 