Holiday Inn 2003 Annual Report Download - page 55

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29 SHARE CAPITAL (CONTINUED)
On 15 April 2003, the Separation of Six Continents PLC was completed and the entire issued share capital of Six Continents PLC
was transferred to InterContinental Hotels Group PLC at fair market value, in exchange for the issue of 734m fully paid ordinary
shares of £1 each, which were admitted to the Official List of the UK Listing Authority and admitted to trading on the London
Stock Exchange on that date. In accordance with the merger relief provisions of Sections 131 and 133 of the Companies Act
1985, the 734m shares are recorded only at nominal value.
On 5 June 2003, the redeemable preference share was redeemed at par value. The redeemable preference share did not carry
any right to receive dividends nor to participate in the profits of the Company.
The aggregate consideration in respect of ordinary shares issued in respect of option schemes during the period was £18m (2002 £3m).
Options to subscribe for ordinary shares millions
At 30 September 2002 25.4
Granted 0.7
Exercised (0.1)
Foregone (1.1)
Options rolled over into equivalent IHG shares less share options transferred to MAB 4.7
IHG share options post Separation 29.6
Granted 8.8
Exercised (4.9)
Foregone (4.9)
At 31 December 2003 28.6
Option exercise price per ordinary share (pence) 295.33 – 593.29
Final exercise date 18 September 2013
Options were originally granted under the Six Continents Executive Share Option Schemes and the Six Continents Employee Sharesave
Scheme. On Separation, employees of the Six Continents Group had the opportunity to roll over their Six Continents PLC share options
into InterContinental Hotels Group PLC share options. The number of options exchanged and the exercise prices were calculated in
accordance with a formula based on the closing Six Continents PLC and opening InterContinental Hotels Group PLC share prices, both
averaged over a five-day period.
The authority given to the Company at the Annual General Meeting on 9 April 2003 to purchase its own shares is still valid at
31 December 2003. A resolution to renew the authority will be put to shareholders at the Annual General Meeting on 1 June 2004.
Share Capital Profit
premium Revaluation redemption Merger Other and loss
account reserve reserve reserve reserve account Total
30 RESERVES – EQUITY INTERESTS £m £m £m £m £m £m £m
Group
At 30 September 2002 as previously reported
in Six Continents PLC 802 1,020 853 – – 2,448 5,123
Prior year adjustment on adoption of UITF 38 ––––(31)–(31)
Separation of MAB – transfers to merger reserve (802) – (853) 1,164 – – (491)
As restated in InterContinental Hotels Group PLC – 1,020 – 1,164 (31) 2,448 4,601
Net assets of MAB eliminated on Separation – (743) – – – (2,034) (2,777)
MAB goodwill eliminated on Separation –––––5050
Minority interest on transfer of pension prepayment –––––(7)(7)
Reduction of shares in ESOP trusts ––––13(5)8
Premium on allotment of ordinary shares* 14 ––––(1)13
Allocation of shares in ESOP trusts ––––7–7
Retained loss for the period –––––(137) (137)
Goodwill (see note 32) –––––139139
Revaluation surplus realised on disposals – (16) – – – 16 –
Reversal of previous revaluation gains due to impairment – (22) ––––(22)
Exchange adjustments on:
assets – 19 – – – (3) 16
borrowings and currency swaps –––––6363
goodwill eliminated (see note 32) –––––(139) (139)
At 31 December 2003 14 258 – 1,164 (11) 390 1,815
* Includes transfer of £1m from the profit and loss account reserve in respect of shares issued to the qualifying employee share ownership trust.