Barclays 2008 Annual Report Download - page 243

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Financial statements
31Ordinary shares, share premium, and other equity (continued)
The authorised share capital of Barclays PLC is £3,540m, $77.5m, ¤40m and ¥4,000m. (31st December 2007: £2,500m) comprising 13,996 million
(31st December 2007: 9,996 million) ordinary shares of 25p each, 0.4 million Sterling preference shares of £100 each, 0.4 million US Dollar preference
shares of $100 each, 150 million US Dollar preference shares of $0.25 each, 0.4 million Euro preference shares of ¤100 each, 0.4 million Yen preference
shares of ¥10,000 each and 1 million (31st December 2007: 1 million) staff shares of £1 each.
Called up share capital, allotted and fully paid
2008 2007
£m £m
Ordinary shares:
At beginning of year 1,650 1,633
Issued to staff under the Sharesave Share Option Scheme 16
Issued under the Incentive Share Option Plan –2
Issue of new ordinary shares 451 84
Repurchase of shares (9) (75)
At end of year 2,093 1,650
Staff shares:
At beginning of year 1 1
Repurchase of shares (1) –
At end of year – 1
Total 2,093 1,651
Issue of new ordinary shares
During the year, the following share issues took place:
On 4th July 2008, Barclays PLC raised approximately £500m (before issue costs) through the issue of 168.9 million new ordinary shares at £2.96 per share
in a firm placing to Sumitomo Mitsui Banking Corporation.
On 22nd July 2008, Barclays PLC raised approximately £3,969m (before issue costs) through the issue of 1,407.4 million new ordinary shares at £2.82 per
share in a placing to Qatar Investment Authority, Challenger Universal Limited (a company representing the beneficial interests of His Excellency Sheikh
Hamad Bin Jassim Bin Jabr Al-Thani, the Chairman of Qatar Holding LLC, and his family), China Development Bank, Temasek Holdings (Private) Limited
and certain leading institutional shareholders and other investors, which shares were available for clawback in full by means of an open offer to existing
shareholders. Valid applications under the open offer were received from qualifying shareholders in respect of approximately 267 million new ordinary
shares in aggregate, representing 19.0 per cent. of the shares offered pursuant to the open offer. Accordingly, the remaining 1,140.3 million shares were
allocated to the various investors with whom they had been conditionally placed.
On 18th September 2008, Barclays PLC raised approximately £701m (before issue costs) through the issue of 226 million new ordinary shares at £3.10 per
share to certain institutional investors. The proceeds of the issuance, in excess of the nominal value and issue costs, of £634m were credited to retained
earnings. This resulted from the operation of section 131 of the Companies Act 1985 with regard to the issue of shares by Barclays PLC in exchange for
shares in Long Island Investments Jersey No. 1 Limited and the subsequent redemption of redeemable preference shares of that company for cash.
During the period from 27th November 2008 to 31st December 2008, 33,000 ordinary shares have been issued following conversion of Mandatorily
Convertible Notes (see below) at the option of their holders.
Share repurchase
During the year Barclays PLC purchased in the market 36 million of its own ordinary shares of 25p each at a total cost of £173m. These transactions
represent less than 0.5% of the issued share capital at 31st December 2008. These shares purchased during the period were open market transactions.
Barclays PLC purchased all of its staff shares in issue, following approval for such purchase being given at the 2008 Annual General Meeting, at a total cost
of £1m.
At the 2008 AGM on 24th April, Barclays PLC was authorised to repurchase 984,960,000 of its ordinary shares of 25p. The authorisation is effective until
the AGM in 2009.
Cancellation of share premium account
On 11th October 2007, the order of the High Court confirming the cancellation of £7,223m of the share premium account was registered with the
Registrar of Companies. This created £7,223m of additional distributable reserves in Barclays PLC. The purpose of the cancellation of the share premium
account was to create distributable profits in order to allow the payment of dividends following the completion of the share buy-back programme, the
redemption of the preference shares which were to have been issued in connection with the proposed merger with ABN AMRO, and to provide maximum
flexibility to manage the Group’s capital resources.
Warrants
On 31st October 2008 Barclays PLC issued, in conjunction with a simultaneous issue of Reserve Capital Instruments, warrants to subscribe for up to
1516.9 million new ordinary shares at a price of £1.97775 to Qatar Holding and HH Sheikh Mansour Bin Zayed Al Nahyan. A fair value of £800m before
transaction costs of £24m was attributed to the warrants, which may be exercised at any time up to close of business 31st October 2013.
The fair value (net of transaction costs) of the warrants have been included in retained earnings (see Note 32).
Shares under option
The Group has four schemes that give employees rights to subscribe for new shares in Barclays PLC. A summary of the key terms of each scheme are
included in Note 45.
At 31st December 2008, 94.1 million (2007: 74.0 million) options were outstanding under the terms of the Sharesave Share Option Scheme (Sharesave),
0.5 million (2007: 1.4 million) options were outstanding under the terms of the Executive Share Option Scheme (ESOS), 0.4 million (2007: 0.5 million)
options were outstanding under the terms of the Woolwich Executive Share Option Plan (Woolwich ESOP) and 20.5 million (2007: 20.5 million) options
were outstanding under the terms of the Incentive Share Option Plan (ISOP), enabling certain Directors and members of staff to subscribe for ordinary
shares between 2008 and 2016 at prices ranging from 144p to 551p.
Barclays PLC Annual Report 2008 241