Copenhagen, 2013-03-11 14:03 CET (GLOBE NEWSWIRE) -- With reference to the General Guidelines for Incentive Pay to the Management approved at the Annual General Meeting on March 22, 2012, the Board of Directors of GN Store Nord A/S (GN) has granted warrants to 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 4,530 warrants in GN Resound (corresponding to approx. 0.7% of the share capital), of which 3,015 will be issued to employees and 1,515 to GN's Executive Management, and 2,541 warrants in GN Netcom (corresponding to approx. 0.8% of the share capital), of which 2,073 will be issued to employees and 468 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 against cash contribution of DKK 19,270. Each warrant in GN Netcom entitles the holder to subscribe one share of nominal DKK 100 in GN Netcom against cash contribution of DKK 17,797.
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 for 2012 (DKK 102.4). This share price is allocated to GN Netcom and GN ReSound based on equity research reports on GN with 68.7% of the share price of GN allocated to GN ReSound and 34.1% to GN Netcom, while the remaining (2.8%) value is allocated to other GN activities.
The total fair market value of warrants granted in 2013, calculated by means of the Black-Scholes model and a Monte Carlo simulation, is estimated at approximately DKK 11.7 million for GN ReSound and DKK 7.2 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 22.7% while for GN Netcom it is assumed to be 29.9%.
- The risk-free interest rate has been set at 0.77% p.a. for both the GN ReSound program and the GN Netcom program.
Maturation of the warrants is conditional upon the share price of GN Netcom and GN ReSound, respectively, outperforms 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, 2013 have received the following warrants:
- CEO of GN ReSound Lars Viksmoen receives 978 warrants with a fair market value of DKK 2,529,108.
- CEO of GN Netcom Mogens Elsberg receives 402 warrants with a fair market value of DKK 1,135,650.
- CFO of GN Store Nord Anders Boyer receives 603 warrants with a fair market value of DKK 1,575,132.
- GN Store Nord employee representative Nikolai Bisgaard receives 22 warrants with a fair market value of DKK 56,892.
- GN Store Nord employee representative Morten Andersen receives 22 warrants with a fair market value of DKK 56,892.
For further information, please contact:
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Michael Bjergby Director – IR, Communications, CSR & Treasury GN Store Nord A/S Tel: +45 45 75 02 92 |
