Last checked at 26 Jun 2020 11:00
AECI Limited - Deferral of Vesting of Performance SharesAECI Limited - Deferral of Vesting of Performance Shares
PR Newswire
London, June 26
AECI LimitedIncorporated in the Republic of South Africa(Registration number: 1924/002590/06)Share code: AFE ISIN: ZAE000000220Hybrid code: AFEP ISIN: ZAE000000238Bond company code: AECILEI: 3789008641F1D3D90E85(“AECI” or the “Company”)
DEFERRAL OF VESTING OF PERFORMANCE SHARES
In terms of the rules of the AECI Long-term Incentive Plan (the “LTIP”), participants were allocated performance shares in 2017. The performance shares vest on the third anniversary of the allocation date and, accordingly, the vesting date of the 2017 tranche is Tuesday, 30 June 2020.
In an announcement published on the JSE Limited’s Stock Exchange News Service on 27 March 2020, shareholders and noteholders were advised that in light of the uncertainty created by the COVID-19 pandemic the Board had considered it prudent and in the best interests of the Company and all its stakeholders to postpone the payment of the gross final cash dividend of 414 cents per share declared for the year ended 31 December 2019. This dividend was payable on Monday, 6 April 2020.
The vesting of the 2017 performance shares will also be deferred to a later date in 2020. An independent third-party broking firm will purchase AECI ordinary shares on-market on behalf of the LTIP in order to settle the obligations to its participants in respect of these performance shares (as defined in the rules of the LTIP) in a non-dilutive manner, in accordance with the rules of the LTIP. AECI will settle the consideration for these shares at a date aligned with their delivery to participants later in the year.
As in the case of the postponement of the dividend payment, the deferral of vesting of the performance shares is in line with AECI’s focus on continuing to safeguard its financial position in terms of liquidity at a time when the duration and full of COVID-19 remain unknown.
Woodmead, Sandton 26 June 2020
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)