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23.
SHARE-BASED PAYMENTS
(continued)
Conditional share plan
A conditional share plan, which awards executives of Bidcorp a conditional right to receive shares
in
Bidcorp free of any cost. Conditional
awards granted are subject to performance conditions measured over a three-year performance period. Subject to the achievement of the
performance conditions, 75% of the conditional awards vest after year three, and the remaining 25% after year four. Due to the unbundling,
the 2015 awards for executive directors were restructured into replacement CSPs over Bidcorp shares. As it is anticipated that the
participants will receive shares in settlement of their awards, a share-based payment reserve has been recognised. These share awards do
not carry voting rights attributable to ordinary shareholders.
The fair value of services received in return for the conditional share awards has been determined by multiplying the number of conditional
share awards expected to vest, by the share price at the date of the award discounted by anticipated future distribution flows. A total of
86 528 of the 124 000 shares are expected to vest, taking into account the performance of the group to date and forecasts to the end of
the performance period, against the targets set at the time of the award. The average discounted share price used in the calculation of the
share-based payment charge on the conditional share awards allotted during the year is R273,91 per share. These awards will vest in the
next three years, where the executive will receive these awards in shares.
A total of 34 816 (2015: 5 348) conditional share awards were forfeited as a result of performance conditions not being met.
The number of conditional share awards in terms of the conditional share award scheme are:
2016
Number
2015
Number
Beginning of year
151 163
190 000
Allotted during the year
35 000
37 500
Transfer as a result of unbundling
89 000
–
Awarded during the year
(47 930)
(70 989)
Vesting arising out of unbundling
(68 417)
–
Forfeited during the year
(34 816)
(5 348)
End of year
124 000
151 163
2016
R’000
2015
R’000
24.
BORROWINGS
Loans secured by mortgage bonds over fixed property (refer to note 13)
78 436
21 372
Loans secured by lien over certain property, plant and equipment in terms of financial leases and
suspensive sale agreements (refer to note 13)
284 365
158 622
Unsecured borrowings
6 825 353
5 053 356
Other borrowings
–
1 122 195
Borrowings
7 188 154
6 355 545
Bank overdrafts
–
4
Total borrowings
7 188 154
6 355 549
Less:
Short-term portion of borrowings
(4 845 484)
(4 534 115)
Long-term portion of borrowings
2 342 670
1 821 434
Schedule of repayment of borrowings
Year to June 2016
–
4 534 115
Year to June 2017
4 845 484
1 235 046
Year to June 2018
1 425 966
236 080
Year to June 2019
747 223
224 561
Year to June 2020
66 940
44 280
Year to June 2021
14 183
81 463
Thereafter
88 358
–
7 188 154
6 355 545
Notes to the consolidated financial statements
for the year ended June 30
Page 94
| Bidcorp Limited Annual integrated report 2016