Cathay Pacific 2006 Annual Report Download - page 79

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77
Cathay Pacific Airways Limited Annual Report 2006
19. Share capital (continued)
At the Extraordinary General Meeting held on 22nd August 2006, the transactions contemplated under the
Restructuring Agreement and the increase of the Company’s authorised share capital from 3,900,000,000 shares
of HK$0.20 each to 5,000,000,000 shares of HK$0.20 each were approved. Upon completion of the Restructuring
Agreement on 28th September 2006, the Company issued 548,045,724 new shares of HK$0.20 each. The issue
of new shares was recognised at HK$16.00 per share, being the fair value of the Company’s shares as at 28th
September 2006.
The Company adopted a share option scheme (the “Scheme”) on 10th March 1999 for the purpose of providing
flight deck crew with an incentive to contribute towards the Company’s results. All participants of the Scheme
were flight deck crew who paid HK$1 each on acceptance of their share options and were granted options to
subscribe for shares of the Company at a price not less than the higher of 80% of the average of the closing prices
of the Company’s shares on the Stock Exchange on the five trading days immediately preceding the date of grant,
and the nominal value of the shares. The Scheme had been closed and no share options were available for issue
under the Scheme during the year. The entitlement of each participant has not exceeded 0.32% of the maximum
aggregate number of shares in respect of which options have been granted under the Scheme.
Options to subscribe for a total of 68,327,000 shares at the exercise price of HK$7.47 per share were granted under
the Scheme on the date of grant 15th March 1999. Other than in limited circumstances, the options in relation to
50% of the shares became exercisable on 15th March 2002, and the balance on 15th March 2004. The options will,
except in limited circumstances, be exercisable until 14th March 2009.
HKFRS 2 “Share-based Payment” does not apply to this Scheme as share options were granted before 7th
November 2002.
Upon exercise of share options, equity is increased by the number of options exercised at the exercise price.
2006
Number of shares
2005
Number of shares
Movements in options outstanding comprise:
At 1st January 16,077,500 26,494,500
Options exercised (7,019,500) (10,417,000)
At 31st December 9,058,000 16,077,500
Options vested at 31st December 9,058,000 16,077,500
No option was granted under the Scheme during the year.
2006 2005
Details of share options exercised during
the year:
Exercise date 10/1/06 – 19/12/06 7/1/05 – 25/11/05
Proceeds received (HK$) 52,435,665 77,814,990
Weighted average closing share price
immediately before the exercise date (HK$) 15.74 14.46
Notes to the Accounts Balance Sheet