Page 149 - S P Setia Annual Report 2013
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Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 147





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






23. SHaRe caPital (cOnt’D)

Share Capital
During the fnancial year, the issued and paid-up ordinary share capital of the Company was increased from RM1,504,250,938 to
RM1,844,034,189 by way of:
(a) The issuance of 320,700,000 new ordinary shares of RM0.75 each for cash pursuant to the Company’s Placement at a subscription price
of RM2.94 per share. The shares were issued for the purpose of working capital; and

(b) The issuance of 132,344,335 new ordinary shares of RM0.75 each for cash arising from the exercise of Warrants at RM2.99 per ordinary
share.

All ordinary shares rank pari passu in all respect with the existing ordinary shares of the Company.

The Employees’ Share Option Scheme which was previously implemented on 6 May 2009 was terminated following the implementation of
the Long Term Incentive Plan (“LTIP” or “Scheme”) on 10 April 2013. The LTIP, which comprises the Employee Share Grant Plan (“ESGP”) and
Employee Share Option Scheme (“ESOS”) allows the Company to grant shares and/or share options under the ESGP and ESOS respectively
to eligible employees and Executive Directors of the Group of up to 15% of the issued and paid-up share capital of the Company. The LTIP is
governed by the By-Laws which was approved by the shareholders on 28 February 2013 and is administered by the LTIP Committee which
is appointed by the Board, in accordance with the By-Laws. The LTIP shall be in force for a period of 5 years to 9 April 2018, unless extended
further.
LTIP

The main features of the Scheme are as follows:

(a) The maximum number of new ordinary shares which may be made available under the Scheme at the point in time when an LTIP award
is offered shall not be more than ffteen percent (15%) of the issued and paid-up ordinary share capital of the Company.

(b) The LTIP awards shall be awarded after taking into consideration the employee’s position, contribution and performance (where
applicable) or such criteria as the LTIP Committee may deem ft subject to the following:
(i) that the number of new ordinary shares made available under the Scheme shall not exceed the amount stipulated in (a) above; and

(ii) that not more than ten percent (10%) of the total new ordinary shares to be issued under the Scheme at the point in time when an LTIP
award is offered be allocated to any employee or Executive Director who, either singly or collectively through persons connected
with him, holds twenty percent (20%) or more in the issued and paid-up share capital of the Company.
(c) In the case of the ESGP, the shares will be vested with the grantee at no consideration on the vesting date; while in the case of the ESOS,
the option price will be determined based on the fve (5) day volume weighted average market price of the ordinary shares on the
date the ESOS award is offered with a potential discount of not more than ten percent (10%) or at the par value of the ordinary shares,
whichever is higher.
(d) The shares and share options granted under the ESGP and ESOS respectively will vest over two (2) to three (3) years commencing 30
June 2014.
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