34 SHARE-BASED PAYMENTS
(i) Employee Share Option Scheme (ESOS)
An Employees Share Option Scheme (“ESOS”) was implemented on 27 February 2015 for the benefit of senior
executives and certain employees of the Company. The ESOS shall be in-force for a period of 5 years. The fair value
of each share option on the grant date was RM1.01. The options are to be settled only by the issuance and allocation
of new ordinary shares of the Company. There are no cash settlement alternatives.
The exercise price of the share options granted under the ESOS is RM3.64 each. The options granted are divided into
5 equal tranches which vest on 14 April 2015, 27 February 2016, 27 February 2017, 27 February 2018 and 27 February
2019. The vesting condition is that the offeree must be an employee or director, as the case may be, of the Company
or its subsidiaries on the respective vesting and exercise dates. The options expire on 27 February 2020.
Movement of share options during the financial year
The following table illustrates the number of, and movements in, share options of the Company during the financial
year.
Number of share options
at exercise price of
RM3.64 each
2015
Unit’000
2014
Unit’000
Outstanding at beginning of financial year
–
–
– Granted
95,054
–
– Exercised
(3,372)
–
– Lapsed
(3,673)
–
Outstanding at end of financial year
88,009
–
Exercisable at end of financial year
12,600
–
The fair value of the ESOS granted during the financial year in which MFRS 2 applies, were determined using the Black–
Scholes valuation model. The significant inputs in the model are as follows:
Fair value per option
RM1.01
Exercise price
RM3.64
Option life
5 years
Weighted average share price at grant date
RM4.04
Expected dividend yield
1.90%
Risk free interest rates
3.35% to 3.62%
Expected volatility
20%
The amounts recognised in the financial statements is as disclosed in Note 10 and Note 11 to the financial statements
arising from the ESOS granted to Directors and employees of the Group and Company.
316
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
