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23.
SHARE-BASED PAYMENTS
(continued)
The BIS
(continued)
The terms and conditions of the options are:
Option holders are only entitled to exercise their options if they are in the employment of the Bidcorp Group in accordance with the terms
of the BIS, unless otherwise recommended by the remuneration committee. To ensure that participants were fairly and reasonably treated on
the unbundling of Bidcorp, participants of the BIS who were granted options in terms of the BIS and who have not exercised their options
at the unbundling date, will exchange each one of their existing Bidvest Group Limited options for a replacement right over one Bidcorp
share and one Bidvest share. The original option price was not adjusted, but on exercise of the replacement right, the original option price
is deducted from the combined value of Bidcorp shares and Bidvest shares. The vesting date and lapse dates of the replacement rights are
the same as that of the original options.
The number and weighted average exercise prices of share options granted to staff are:
2016
2015
Number
Average
price
R
Number
Average
price
R
Beginning of year
2 364 875
205,36
2 298 750
182,07
Granted
688 000
301,54
501 500
250,73
Transfer as a result of unbundling
985 845
193,00
–
–
Lapsed
(106 015)
210,07
(5 000)
134,56
Exercised
(799 480)
160,51
(430 375)
134,64
End of year
3 133 225
233,88
2 364 875
205,36
The options outstanding at June 30 2016 have an exercise price in
the range of R135,00 to R301,54 (2015: R135,00 to R250,73) and
a weighted average contractual life of 4,4 to 9,5 years (2015: 5,4 to
9,4 years).
Share options outstanding at June 30 by year of grant are:
2011
67 050
135,00
100 625
135,00
2012
423 125
134,56
536 750
134,56
2013
479 250
208,91
598 000
208,91
2014
834 500
237,54
628 000
237,54
2015
641 300
250,73
501 500
250,73
2016
688 000
301,54
–
–
3 133 225
233,88
2 364 875
205,36
The fair value of services received in return for options awarded is measured based on a binomial model. The contractual life of the option is
used as an input into this model.
The fair value of the shares allotted during the current year and the assumptions used are:
2016
2015
Fair value at measurement date (rand)
86,12
82,37
Exercise price (rand)
301,74
250,73
Expected volatility (%)
23,78
21,01
Option life (years)
4,00 – 6,00
4,00 – 6,00
Distribution yield (%)
3,06
2,78
Risk-free interest rate (based on national government bonds) (%)
9,21
7,70
The volatility is based on the recent historic volatility of The Bidvest Group Limited share.
Bidcorp Limited Annual integrated report 2016 |
Page 93
Financial overview