JKH announces new ESOP

Monday, 24 June 2019 00:35 - - {{hitsCtrl.values.hits}}

Premier blue chip John Keells Holdings PLC has announced a new Employee Share Option Plan (ESOP) amounting to 1.5% of the issued share capital of the company with 0.5% issued annual over three years.

The move is subject to shareholder approval at a General Meeting.

JKH has been implementing ESOP since 1996.

Its board of directors is of the view that maintaining a proprietary interest and a long-term commitment amongst the senior executives of the group, including its executive directors, on a continuing basis, is imperative to increasing the shareholder value in the Company.

At present under ESOP Plans 8 and 9 JKH has granted 45.7 million shares of which 26.3 million shares vested and 19.4 million unvested.

Based on the issued capital of the company, the total via new ESOP Plan of 1.50%, and 0.50% per annum would amount to 19,772,599 and 6,590,866 options to purchase 19,772,599 and 6,590,866 converted shares respectively.

However, the number of shares on offer will vary and ultimately depend on the number of shares representing the stated capital of the company on the date of the offer of each tranche of options as aforesaid.

The JKH Board decision was made on 24 May but the disclosure was last week due to an inadvertent oversight.

The stated capital of JKH as at 31 May 2019 is Rs. 62,802,173,189.52 and number of shares representing the current stated capital is 1,318,173,279 Ordinary Shares.

The granting of options under the proposed employee share option scheme is in compliance with the Listing Rules of the Colombo Stock Exchange and subject to shareholder approval, by way of a Special Resolution at a General Meeting. The issue and listing of shares issued pursuant to such scheme is subject to approval from the Exchange at the time of exercise.

The company sincerely regrets the delay in this disclosure due to an inadvertent oversight. It reiterates that ESOPs have been granted by JKH on an annual basis since 1996 and this new Plan follows the same principles of the previous ESOP Plans approved by shareholders. The company also wishes to point out that it is yet to receive shareholder approval and make any grants under the proposed ESOP Plan.