NewWorld Development Company Limited
94
REPORT OF THE DIRECTORS
DIRECTORS’ INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES
(continued)
(B) Long position in underlying shares – share options
(continued)
Share Option Scheme of NWS Holdings Limited (“NWSH”)
(continued)
Share options granted to Director
Name
Date of grant
Exercisable
period
(Note)
Number of share options
Exercise
price
per share
(2)
HK$
Balance
as at
1 July 2014
Granted
during
the year
Adjusted
during
the year
(2)
Exercised
during
the year
Balance
as at
30 June
2015
Dr. Cheng Kar-Shun, Henry
9 March 2015
(1)
–
7,400,000
1,080
–
7,401,080
14.158
Notes:
(1) 60.0% of the share options are exercisable from 9 May 2015 to 8 March 2020 while the remaining 40.0% of the share
options are divided into 2 tranches exercisable from 9 March 2016 and 9 March 2017 respectively to 8 March 2020.
(2) NWSH declared interim dividend for the six months ended 31 December 2014 in scrip form (with cash option) during the
year. Accordingly, adjustments were made to the number of outstanding share options and the exercise price. The exercise
price per share of the share options was adjusted from HK$14.160 to HK$14.158 on 19 May 2015.
(3) The cash consideration paid by the above Director for the grant of share options is HK$10.0.
Share options granted to other eligible participants
Date of grant
Exercisable
period
(Note)
Number of share options
Exercise
price
per share
(3)
HK$
Balance
as at
1 July 2014
Granted
during
the year
(2)
Adjusted
during
the year
(3)
Exercised
during
the year
Balance
as at
30 June
2015
9 March 2015
(1)
– 48,070,000
6,973
– 48,076,973
14.158
Notes:
(1) 60.0% of the share options are exercisable from 9 May 2015 to 8 March 2020 while the remaining 40.0% of the share
options are divided into 2 tranches exercisable from 9 March 2016 and 9 March 2017 respectively to 8 March 2020.
(2) The closing price per share immediately before 9 March 2015, the date of grant, was HK$14.06.
(3) NWSH declared interim dividend for the six months ended 31 December 2014 in scrip form (with cash option) during the
year. Accordingly, adjustments were made to the number of outstanding share options and the exercise price. The exercise
price per share of the share options was adjusted from HK$14.160 to HK$14.158 on 19 May 2015.
(4) The cash consideration paid by each eligible participant for each grant of share options is HK$10.0.
The fair value of the share options granted during the year with exercise price per share of HK$14.160, which was
adjusted to HK$14.158 per share on 19 May 2015, is estimated at HK$2.2563 per share using the Binomial pricing
model. Value is estimated based on the risk-free rate of 1.29% per annum with reference to the rate prevailing of
the Hong Kong government bond, an approximately five-year period historical volatility of 30.0%, assuming dividend
yield of 5.34% per annum and an expected option life of five years.
The Binomial pricing model required input of subjective assumption such as the expected stock price volatility.
Change in subjective input may materially affect the fair value estimates.
