Interim Report 2015/2016
OTHER INFORMATION
51
Directors’ Interests in Securities
(continued)
(B) Long position in underlying shares – share options
(continued)
(2) Long position in underlying shares of New World China Land Limited (“NWCL”) – share options
(continued)
Share options granted to other eligible participants (continued)
NWCL 2011 Share Option Scheme
(continued)
The fair value of the share options granted during the period with exercise price per share of HK$4.504 is
estimated at HK$1.37 each using the Binomial pricing model. Values are estimated based on the risk-free rate
of 1.28% per annum with reference to the rate prevailing on the Exchange Fund Notes, a five-year period
historical volatility of 38.32%, assuming dividend yield of 0.63% and an expected option life of five years.
The Binomial pricing model required input of subjective assumptions such as the expected stock price
volatility. Change in the subjective input may materially affect the fair value estimates.
(3) Long position in underlying shares of NWS Holdings Limited (“NWSH”) – share options
Share options granted to Directors of the Company
Number of share options
Name
Date of grant
Exercisable
period
Balance
as at
1 July 2015
Adjusted
during the
period
(2)
Exercised
during the
period
Balance
as at
31 December
2015
Exercise
price
per share
(2)
(Note)
HK$
Dr. Cheng Kar-Shun, Henry 9 March 2015
(1)
7,401,080
6,845
–
7,407,925
14.145
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 final dividend for the year ended 30 June 2015 in scrip form (with cash option) during the period. 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$14.158 to HK$14.145 on 29 December 2015.
(3) The cash consideration paid by the above Director for the grant of share options is HK$10.0.
