Share subscription price and market value of Cargotec Corporation stock options 2010B
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 6 APRIL 2011 AT 9:00 AM EEST
The Annual General Meeting on 5 March 2010 decided on issue of stock options to the key personnel of Cargotec and its subsidiaries. The Board decides on the target group, earnings criteria and option issuance on an annual basis, in the spring of the years 2010 (2010A option rights), 2011 (2010B option rights) and 2012 (2010C option rights). The maximum total number of stock options issued will be 1,200,000.
The share subscription price for stock option 2010B is EUR 31.23/share (the trade volume weighted average quotation of the class B share on NASDAQ OMX Helsinki Ltd. during 14 March-25 March 2011). The dividends will be deducted from the share subscription price each year.
The beginning of the share subscription period with stock options 2010B requires attainment of performance targets established by the Board of Directors. Those stock options, for which the targets have not been attained, will expire. The Board of Directors will determine the performance criteria and target group for stock options 2010B later in year 2011.
If the criteria are to be met at full, a maximum total of 400,000 new class B shares or existing class B shares held by the company can be subscribed for with stock options 2010B. The share subscription period for stock options 2010B will be 1 April 2014-30 April 2016.
The theoretical market value of one stock option 2010B is EUR 15.44. The theoretical market value of the stock options 2010B is thus EUR 6,176,000. The theoretical market value of one stock option has been calculated through the use of Black & Scholes stock option pricing model with the following input factors: share price EUR 32.48, share subscription price EUR 31.23, risk free interest rate 2.74%, validity of stock options five years and volatility 49.48%.
The terms and conditions of the Option programme 2010 are available on the company's website www.cargotec.com.
Kirsi Nuotto, Executive Vice President, Human Resources, tel. +358 20 777 4000
Outi Aaltonen, Senior Vice President, General Counsel, tel. +358 20 777 4000
For further information for investors:
Paula Liimatta, Investor Relations Manager, tel. +358 20 777 4000
Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 2.6 billion in 2010 and it employs approximately 10,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com