By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)- First listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc (SEPLAT) on Monday through its stockbroker, Stanbic IBTC Stockbrokers Limited notified the Nigerian Stock Exchange (NSE) of the company’s intention to list its Long-Term Incentive Plan (LTIP) following the conclusion of the of the 2014 Initial Public Offer (IPO).
The oil and gas upstream firm said its LTIP was approved and disclosed in the Prospectus that was issued in April 2014 and the revision was made to the earlier approval in June 2014. “At its Annual General Meeting held in June 2014, the shareholders of Seplat Petroleum Development Company Plc approved the Long-Term Incentive Plan for the company’s staff, which is intended to increase the employee productivity, morale and loyalty by focusing their performance more on long-term goals through tying employee performance to rewards,” the company affirmed.
According to Seplat, its LTIP is made up of Global Offer Bonus granted to the company’s executive directors (EDs) and seniour management as a reward for their contribution to achieving a successful Global Offer and disclosed in the Prospectus dated April 9, 2014 issued in connection with the Seplat’s IPO.
The company says a total of 7,745,945 shares qualify as Global Offer Bonus shares out of which 3,872,972.50 shares vest immediately but will be held till 2015 and 3,872,972.50 will vest after two (2) years.
Another LTIP IS Annual Bonus which is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.
The other LTIP is the non-exec utive directors share scheme designed for all non-EDs who have served on the board for at least nine (9) months as at the date of the Global Offer are eligible to subscribe to ordinary shares of the Seplat with an equivalent value of 200,000 pounds based on the UK Global Offer Share Price at the nominal value of the shares based on the Global Offer share price.
“The legal and beneficial ownership of the shares will vest in the directors from the subscription date, with a restriction on the sale of the shares, such that the directors cannot sell or encumber any of the shares until the first anniversary of the Global Offer at which point they may sell up to 50 percent of the scheme shares while any of the remaining 50 percent cannot be sold until after the second anniversary of the Global Offer,” the company added.
Seplat says is its intention to issue the LTIP shares at nominal cost to the company as part of the agreed employee incentive scheme in consideration of their services over a period of time. “The company will pay the cost of the shares at nominal price from its profit and allotment will be made from the company’s Authorised Share Capital and will not be bought on the floor of the NSE. The shares are to be issued from the unissued shares of the company at nominal price and allotted to the employees/Trustees at nominal price too,” Seplat affirmed.
At the close of business on the Nigerian bourse, share price of Seplat dropped 1.74 percent to N336.05 from N342.00 traded the previous session; losing N5.95 kobo per share.
