As approved by the Board of Directors on 24.06.2010, Sampath Bank this week announced the major capital restructuring plan for 2010, which entails a script dividend, a share split and an ESOP to the Staff.
The Bank issued a statement detailing the salient features of the capital restructuring plan.
Scrip Dividend: This is an interim dividend for 2010 declared in the form of fully paid shares of the Bank. The basis is Rs.3/- per existing share, valued at Rs.326/- per share, after providing for the 10% Withholding Tax. This move will create 627,596 fully paid new shares, which will be allotted to the shareholders as part of their dividend for 2010. The entire cost of the scrip dividend will be funded by the profits of the bank for 2010 and hence there will be no capitalization of reserves. However, the stated capital of the bank will rise by Rs.204,596,253/- being the value of the new shares to be created. Consequently, the number of shares in issue too will rise from the existing 75,776,390 to 76,403,986 shares.
Sub Division of Shares or share-split: This a one for one share split and the second sub-division undertaken by the Bank for the year, aimed at further increasing the market liquidity of the Sampath Bank share.
Consequently, every Sampath Bank share held by the shareholders will be split in to two and the number of shares will be increased by 100% from 76,403,986 to 152,807,972. There is no increase in the stated capital.
Share Option to the Staff: This was undertaken to recognize the contributions made by the staff and further motivate them. Accordingly, the bank will create 3,056,159 share options to be offered to the eligible staff, at 2% of 152,807,972 shares, being the number immediately after the proposed sub division of shares.
The shares will be priced at Rs. 80/- per share. The scheme will however be subject to certain performance criteria to be achieved by the Bank for 2010. The option exercisable period would be 3 years, from the entitlement date fixed in the scheme. In the event of the options being fully exercised by the eligible staff, the stated capital of the bank would rise by Rs. 244,492,720, as a result of the consideration to be paid by the staff under the ESOP.
All three proposals contained above will be subject to the approval of the Colombo Stock Exchange, approval of the other relevant regulatory bodies and adoption of all requisite resolutions by the shareholders of the bank, at a general meeting to be convened in due course.
source - www.dailymirror.lk
No comments:
Post a Comment