5 Apr 2016 07:00
5 April 2016
Powerflute
GRANT OF OPTIONS
Powerflute Oyj ("Powerflute" or the "Company") today announces that on 4 April 2016, the Board of Directors approved the following grant of options over the Company's ordinary shares to certain of its Directors under the terms of the Powerflute Share Option Scheme 2012 ("PSOS 2012"):
· 800,000 shares to Marco Casiraghi, consisting of 400,000 2012E Options and 400,000 2012F Options.
· 600,000 shares to David Walton, consisting of 300,000 2012E Options and 300,000 2012F Options.
The total number of options now granted under the PSOS 2012 and other share option schemes of the Company is 13,769,300, equivalent to 4.9% of the existing issued share capital of the Company (excluding shares held in treasury).
The 2012E and 2012F options are subject to different performance targets and measurement periods, but in all other respects are identical. Successful vesting of the awards is dependent upon the achievement of demanding performance targets, with 50% of each award linked to the average annual increase in basic earnings per share ("EPS") and 50% linked to the average annual total shareholder return ("TSR") over the relevant measurement periods.
The average annual increase in EPS is to be measured by reference to the basic EPS achieved by the Company in the financial years immediately preceding the date of grant and the measurement date. The average annual TSR achieved over the measurement period is to be determined by reference to the average share price of the Company during the three-month period immediately preceding the date of grant and the measurement date, adjusted to take account of dividends paid or any other similar distributions to shareholders made during the measurement period.
The subscription price, key performance targets and measurement periods of the 2012E and 2012F share options are as follows:
2012E | 2012F | ||
Date of grant | 4 Apr 2016 | 4 Apr 2016 | |
Average annual increase in EPS to achieve full vesting | 17.5% | 17.5% | |
Average annual TSR required to achieve full vesting | 20.0% | 20.0% | |
Measurement date | 4 Apr 2018 | 4 Apr 2019 | |
Last possible exercise date | 4 Apr 2022 | 4 Apr 2022 | |
Subscription price per share | EUR 0.01 | EUR 0.01 |
Where the average annual increase in EPS is below 10.0%, none of this portion of the award will vest and where the average annual TSR is below 10.0%, none of this portion of the award will vest, with proportional vesting applying between the minimum and maximum thresholds.
Shares acquired as result of exercise of the 2012E and 2012F Options are subject to a minimum holding period and may not be sold during the two year period commencing on the measurement date.
The Company's share price at the close of business on 4 April 2016 was 80.75 pence.
Including these awards, the shareholdings of the directors to whom options have been granted pursuant to this announcement and the total number of share options now awarded to them are as follows:
Name | Shareholding | Options | ||
Number | % | Number | % | |
Marco Casiraghi | 7,938,629 | 2.8 | 6,810,400 | 2.4 |
David Walton | 1,250,000 | 0.4 | 3,387,900 | 1.2 |
- Ends-
For further information, please contact:
Powerflute Dermot Smurfit (Chairman) Marco Casiraghi (CEO) David Walton (CFO)
|
c/o Oliver Winters, FTI Consulting +44 20 3727 1535 |
Numis Securities Mark Lander (Corporate Broking) Andrew Holloway / Jamie Lillywhite (Nominated Advisor)
|
+44 20 7260 1000 |
FTI Consulting Oliver Winters Tom Hufton
| +44 20 3727 1535 |
About Powerflute
Powerflute is a paper and packaging group quoted on the AIM market of the London Stock Exchange (Ticker: POWR) which seeks to acquire businesses with strong fundamentals whose performance can be improved through a combination of management focus and targeted investment.
The Group currently has two main activities; Packaging Papers which trades under the name Powerflute and operates a paper mill in Kuopio, Finland producing a specialised form of Nordic semi-chemical fluting used in the manufacture of high-performance corrugated board; and Coreboard and Cores, which trades under the name Corenso and is a leading international manufacturer of high performance coreboard and cores, with coreboard mills in the United States and Europe and a network of core producing facilities in Europe, North America and China.
Nordic semi-chemical fluting is made from locally sourced birch and boxes manufactured using it demonstrate superior strength and moisture resistance and are used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill is one of only three suppliers of Nordic semi-chemical fluting in Europe.
Cores and coreboard are manufactured from recycled paper and are used for applications in paper, packaging, textiles, steel, aluminium and many other industries. Coreboard and cores produced by Corenso demonstrate superior strength and rigidity and are suitable for use in the most demanding applications.
For further information, please visit www.powerflute.com.