Singapore Airlines 2003 Annual Report Download - page 62

60 SIA Annual Report 02/03
Report by the Board of Directors
8 Acquisition/Disposal of Subsidiary Companies
On 2 August 2002, SIA Engineering Company Limited incorporated a wholly-owned subsidiary company, SIAEC
Global Pte Ltd, with a paid-up capital of $2.00.
On 28 October 2002, Singapore Airport Terminal Services Limited ("SATS") acquired the following company:
Name of company Cost of investment Net tangible assets Interest acquired
Country Foods Pte Ltd $4,000,000 $2,661,000 57.1%
Subsequent to the initial acquisition of Country Foods Pte Ltd, SATS subscribed for additional 1,142,858 ordinary
shares of $1 each at a premium of $0.75 per share to increase its interest from 57.1% to 66.7%. Total cost of
acquisition was $6.0 million cash and the net tangible assets acquired was $4.5 million.
Star Kingdom Investment Limited was liquidated on 31 October 2002.
9 Options on Shares in the Company
The Singapore Airlines Limited Employee Share Option Plan ("the Plan"), which comprises the Senior Executive
Share Option Scheme and the Employee Share Option Scheme for senior executives and all other employees
respectively, was approved by shareholders on 8 March 2000.
Under the Plan, all options to be issued will have a term no longer than 10 years from the date of grant. The
exercise price of the option will be the average of the closing prices of the Company’s ordinary shares on the
SGX-ST for the five market days immediately preceding the date of grant.
Under the Employee Share Option Scheme, options will vest two years after the date of grant. Under the Senior
Executive Share Option Scheme, options will vest:
(a) one year after the date of grant for 25% of the ordinary shares subject to the options;
(b) two years after the date of grant for an additional 25% of the ordinary shares subject to the options;
(c) three years after the date of grant for an additional 25% of the ordinary shares subject to the options; and
(d) four years after the date of grant for the remaining 25% of the ordinary shares subject to the options.
At the date of this report, the Board Compensation and Organizational Committee administering the Plan
comprises the following directors:
Koh Boon Hwee Chairman
Cheong Choong Kong
Fock Siew Wah
Lim Boon Heng (appointed to the Committee on 11 September 2002)
Cheong Choong Kong did not participate in any deliberation or decision in respect of options granted to him.
No options have been granted to controlling shareholders or their associates, or parent group employees.
No employee has received 5% or more of the total number of options available under the Plan.
The options granted by the Company do not entitle the holders of the options, by virtue of such holding, to any
rights to participate in any share issue of any other company.
During the financial year, in consideration of the payment of $1.00 for each offer accepted, offers of options were
granted pursuant to the Plan in respect of 13,787,922 unissued shares of $0.50 each in the Company at an
exercise price of $12.82 per share.