Crocodile farming company Padenga Holdings shareholders yesterday approved a plan to set up a share option scheme for its employees and grant options to its management, which will give the two groups an equivalent of 15 percent of the company’s issued share capital.
The plan would also allow the company to meet Zimbabwe’s empowerment law requirements.
Speaking to shareholders at the company’s extraordinary general meeting (EGM), chief executive, Gary Sharp said the options will be awarded to selected employees based on their performance.
“Awarding of options shall be based on the performance of an employee and contribution to the success of the company,” said Sharp.
The company said the share option scheme will enable it to comply with the requirements of the approved indigenisation implementation plan, while enhancing the capital base of the business.
Zimbabwe’s Indigenisation and Empowerment Act of 2008 requires foreign owned companies valued at over $500 000 to cede 51 percent to black locals.
However, President Robert Mugabe last year indicated that compliance to the policy could take several forms with emphasis being placed on local procurement and retaining earnings in Zimbabwe.
According to the agreements, Padenga Management Share Ownership Trust will be granted 54 159 344 ordinary shares which represents 10 percent of the company’s current issued share capital while Padenga Employee Share Ownership Trust will be granted 27 079 672 ordinary shares, representing 5 percent of the company’s current issued share capital.
Padenga has 541.59 million shares in issue and is currently trading at 21.1 cents on the local bourse.
The company amended the share option price to the volume weighted average price (VWAP) of Padenga shares over the previous 60 trading days.
In a trading update after the company’s annual general meeting, Sharp said that total expenses for the four months to April 2017, are in line with budget and the company is confident that it will achieve its operational and financial targets for the year and returning another positive set of financial results.
Sharp said a total of 4 502 crocodiles have been culled as of May 17, 2017, adding that the size and quality of the cull crop in the pens gives the company confidence that it will attain its target cull of 46 000 crocodiles.
The company said 2 471 skins have been graded and achieved 97 percent first grade ratio from the first sales grading conducted early this month.
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