Engro Polymer and Chemicals Limited’s Implementation Status of Employees Share Option Scheme of Engro Polymer and Chemicals Limited as at June 30, 2011

Engro Polymer and Chemicals Limited’s Implementation Status of Employees Share Option Scheme of Engro Polymer and Chemicals Limited as at June 30, 2011

Karachi: With reference to your letter Ref. No.KSE/C-297-8141 dated December 13, 2010, please find enclosed herewith the progress report on the Employees Share Option Scheme upto June 30, 2011.

Engro Polymer and Chemicals Limited Progress Report on Employees Share Option Scheme Upto June 30, 2011

1. Level-wise breakup of the options granted

The Scheme was announced for senior employees who were considered critical to the business operations and those employees who either joined the Company in eligible grades or were promoted to such grades by October 31, 2008. Level wise breakup of options granted is as follows:

Level No. of Options granted
26 750,000
27 675,000
28 1,010,713
29 485,714
30 and 30+ 2,378,573
Total 5,300,000

In January 2010, EPCL announced a Rights Issue of 27.5% at Rs.10 per share. Consequently, the total number of options increased by 1,457,500 i.e. from 5,300,000 to 6,757,500 and the Exercise Price reduced from Rs.22 to Rs. 19.41.

The above change in number of options and exercise price has been approved by SECP through its letter No.SMD/CIW/ESOS/4/2007 dated May 6, 2010.

2 Options exercised and number of shares issued

Vesting period of the Scheme ended on December 31, 2009, where after the options can be exercised within a period of two years.

No option has been exercised upto June 30, 2011.

3 Options lapsed

Following is the level wise detail of options lapsed, after taking into account the increased number of shares as a result of rights issue, since the inception of the Scheme upto June 30, 2011.

Level No. of Options granted
26 382,500
27 510,000
28 387,053
Total 1,279,553

After taking into account the above lapsed options, the total number of exercisable options is now 5,477,947 (6,757,500 options granted less 1,279,553 options lapsed)

4 Adjustment of offer price as a consequence of corporate actions

Offer price was adjusted as a result of Rights issue from Rs.22 to Rs.19.41 per option, as mentioned in detail in Note 1 above.  This change has been approved by SECP through its letter No.SMD/CIW/ESOS/4/2007 dated May 6, 2010.

Engro Polymer and Chemicals Limited Progress Report On Employees Share Option Scheme Upto June 30, 2011

5 Variation of the terms of the scheme

During the year 2008, the Company proposed certain changes relating to `grant date’ in the originally approved scheme. These changes were approved by the shareholders in their EGM held on June 27, 2008, and subsequently by the SECP on September 25, 2008. As per me approved change to the Scheme ‘grant date’ is the date of EGM held on October 8, 2007, when the scheme was originally approved.

6 Amount of money received against exercise of options
None.

For more information, contact:
Arshaduddin Ahmed
Company Secretary
Engro Polymer and Chemicals Limited
First Floor, Bahria Complex I,
24 M.T. Khan Road,
Karachi – 74000
Pakistan.
UAN: +9221 111 411 411

Leave a Reply