Lenovo 2011 Annual Report Download - page 58

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2010/11 Annual Report Lenovo Group Limited 61
Directors’ Rights to Acquire Shares or Debentures (continued)
Share Option Schemes (continued)
4. Valuation of share options
The share options granted are not recognized in the financial statements until they are exercised. The directors consider
that it is not appropriate to value the share options on the ground that certain crucial factors for such valuation are variables
which cannot be reasonably determined at this stage. Any valuation of the share options based on speculative assumptions
in respect of such variables would not be meaningful and the results thereof may be misleading to the shareholders. Thus, it
is more appropriate to disclose only the market price and exercise price.
Long-term incentive program
The Company adopted the LTI Program on May 26, 2005, under which the Board or the trustee of the program shall select the
employees (including but not limited to the directors) of the Group for participation in the program, and determine the number of
shares to be awarded.
Details of the program and the movement in the number of awards for the year ended March 31, 2011 are set out in the Corporate
Governance section on pages 38 to 41 and note 30(a) to the financial statements.
Apart from the share option schemes and the LTI Program, at no time during the year ended March 31, 2011 was the Company
or any of its subsidiaries a party to any arrangements to enable the directors of the Company to acquire benefits by means of
acquisitions of shares in, or debentures of, the Company or any body corporate.
Purchase, Sale, Redemption or Conversion of the Company’s Securities
During the year, the Company purchased 157,760,000 ordinary shares of HK$0.025 each in the capital of the Company at prices
ranging from HK$3.94 to HK$4.60 per share on The Stock Exchange of Hong Kong Limited.
Month/Year
Number of
shares
repurchased
Highest price
per share
Lowest price
per share
Aggregate
Consideration
paid (excluding
expenses)
HK$ HK$ HK$
6/2010 34,456,000 4.50 4.17 149,427,360
7/2010 43,026,000 4.49 4.11 185,729,660
8/2010 6,000,000 4.53 4.41 26,738,540
9/2010 5,852,000 4.60 4.42 26,391,160
3/2011 68,426,000 4.38 3.94 284,393,100
The repurchased shares were cancelled and accordingly, the issued share capital of the Company was diminished by the nominal
value thereof. The premium payable on repurchase was charged against the share premium account of the Company.
On November 15, 2010, group companies/funds of TPG Capital, Newbridge Capital and General Atlantic, the holders of the
Company’s convertible preferred shares, converted 769,167 convertible preferred shares into 282,263,115 fully paid ordinary
shares of the Company.
Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s
securities during the year ended March 31, 2011.