Solar’s Supervisory Board will grant a total of some 42,000 share options to its Executive Board and Management Team in 2012. The total market value of these options is estimated at approx. € 0.4m.
The Supervisory Board will again grant options to the Executive Board and Management Team in 2012. The exercise price will be fixed at the average price on NASDAQ OMX Copenhagen for the first 10 business days after publication of Annual Report 2011 on 15 March 2012.
Grant date is 30 March 2011 when the exercise price will also be calculated. The number of options will not be fixed until this date but is expected to total some 42,000 share options, including the Executive Board’s share. The Supervisory Board will also grant options in the coming years.
Market value
Total market value of the granted options is estimated at approx. € 0.4m, calculated using the Black-Scholes model with a volatility of 40% (based on the past 36 months), an interest-rate level of 4%, a share price of DKK 300 and subject to the condition that granted options must be exercised in March 2015. The valuation takes into account future dividend distribution, corresponding to 3% of the share price.
Exercise of share options
Share options issued in 2012 can be used to acquire shares in the company in 2015 and 2016. However, exercise can only be made within the first 10 banking days following publication of the company's annual reports for 2014 and 2015, respectively.
Exercise of share options is conditional on the individual employee not having resigned from the group before the exercise date.
Background on Solar’s incentive scheme
In 2006, the Supervisory Board established an incentive scheme for the Executive Board, extending the scheme to cover the Solar Group’s Management Team in 2008. Under this scheme, share options are granted that entitle the holder to buy shares from the company's holding of treasury shares. The reason for establishing the scheme was a wish to involve leading employees more in the group and to create a share price-dependent incentive for participants, thus enhancing agreement between the interests of shareholders and participants. As at 31 December 2011, share options outstanding totalled 132,264.
Yours faithfully
Solar A/S
Jens Borum
Chairman of the Supervisory Board
Solar facts
Solar A/S was established in 1919 and listed on the Copenhagen Stock Exchange in 1953. Solar is one of Northern Europe’s leading technical wholesalers within electrical, heating, plumbing and ventilation products. The group based in Kolding, Denmark, has subsidiaries in Denmark incl. the Faroe Islands, Sweden, Norway, the Netherlands, Belgium, Germany, Poland and Austria. Furthermore, Solar owns Aurora Group, a leading Scandinavian distributor of accessories for consumer electronics that operates in Denmark, Sweden, Norway and Finland. In 2011, Solar Group revenue totalled € 1,532.4m, equating DKK 11.4bn. The group has approximately 3,600 employees.
For further information, please visit: www.solar.eu.
