Copenhagen, 2014-03-11 13:02 CET (GLOBE NEWSWIRE) -- With reference to the General Guidelines for Incentive Pay to the Management approved at the annual general meeting on March 21, 2013, the board of directors of GN Store Nord A/S (GN) has granted warrants to the executive management and other carefully selected key managers and key employees of GN, GN ReSound A/S (GN ReSound) and GN Netcom A/S (GN Netcom).
The grant comprises a total of 3,525 warrants in GN ReSound (corresponding to approx. 0.6% of the share capital), of which 2,806 will be issued to employees and 719 to GN's executive management, and 2,018 warrants in GN Netcom (corresponding to approx. 0.6% of the share capital), of which 1,583 will be issued to employees and 435 to GN's executive management.
The grant is part of a six-year program, according to which grants shall take place in 2010, 2011, 2012, 2013, 2014 and 2015. A maximum of 62,000 warrants in GN ReSound and 29,200 warrants in GN Netcom shall be granted over this period.
Each warrant in GN ReSound entitles the holder to subscribe one share of nominal DKK 100 in GN ReSound at a price of DKK 24,711. Each warrant in GN Netcom entitles the holder to subscribe one share of nominal DKK 100 in GN Netcom at a price of DKK 24,596.
The exercise price for the grant is calculated based on the average share price of GN over the five trading days following the release of the Annual Report 2013 (DKK 133.8). This share price is allocated to GN Netcom and GN ReSound based on equity research reports on GN with 70.2% of the share price of GN allocated to GN ReSound and 37.4% to GN Netcom while the remaining (7.7%) value is allocated to other GN activities.
The total fair market value of warrants granted in 2014, calculated by means of the
Black-Scholes model and a Monte Carlo simulation, is estimated at approximately DKK 18.3 million for GN ReSound and DKK 12.9 million for GN Netcom.
The market value of the warrant program is based on the following additional assumptions:
- The expected duration of the warrant program is assumed to be six years for both GN ReSound and GN Netcom
- It is assumed that there will be no dividend payment in either GN Netcom or GN ReSound in the duration of the warrant programs
- The volatility of the GN ReSound share is assumed to be 19.8% while for GN Netcom it is assumed to be 25.4%
- The risk-free interest rate has been set at 1.03% p.a. for both the GN ReSound program and the GN Netcom program
Vesting of the warrants is conditional upon the share price of GN Netcom and GN ReSound, respectively, outperforming a comparative index that is calculated on the basis of the key competitors and indicators of the industry segment. In accordance with Section 28a of the Danish Securities Trading Act, GN hereby informs that the executive management and employee representatives in GN Store Nord A/S on March 11, 2014 have received the following warrants:
- CEO of GN ReSound Lars Viksmoen receives 493 warrants with a fair market value of DKK 2,566,065
- CEO of GN Netcom Niels Svenningsen receives 373 warrants with a fair market value of DKK 2,388,319
- CFO of GN Store Nord Anders Boyer receives 288 warrants with a fair market value of DKK 1,573,316
- GN Store Nord employee representative Nikolai Bisgaard receives 20 warrants with a fair market value of DKK 104,100
- GN Store Nord employee representative Morten Andersen receives 18 warrants with a fair market value of DKK 93,690
For further information please contact:
Michael Bjergby
Senior Director – IR, Communications, CSR & Treasury
GN Store Nord A/S
Tel: +45 45 75 02 92
