SEO Version
FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
112
17
FORTERRA UNIT OPTION SCHEME (CONTINUED)
The fair value amount in respect of the outstanding options that had been charged through the
statement of profit or loss of CREO and the fair value amount of the relevant employee benefits
that was required to be settled in equity of CREO prior to the acquisition of CREO made by the
Trust were recognised in the Unitholders’ Funds of the Trust.
In 2013, as part of the acquisition of the units in the Trust by New Precise, the unit options
previously granted to the former controlling unitholder and his associates were assigned to New
Precise. Following the assignment, the expiry dates of all outstanding unit options were extended
by approximately 12 months.
The fair values of the options were calculated using the binomial option pricing model. The
options under Forterra Unit Option Scheme are measured in SGD, being modified as follows:
Tranches
One
Two
Three
Four
Five
Six
Seven
Exercise price ($)
0.35
3.10
3.10
3.30
2.60
3.10
3.10
Number of options
3,825,000 3,810,000 75,000 150,000 2,000,000 400,000 575,000
Expected volatility
20.95% 22.21% 22.21% 21.87% 53.89% 40.40% 38.76%
Expected life (years,
extended)
5.0
5.5
5.5
5.5
7.0
4.8
5.1
Risk free rate
5.24% 5.50% 5.50% 4.33% 4.47% 0.87% 0.53%
Earliest exercise date
21/6/2010 21/6/2010 21/6/2010 21/6/2010 10/9/2013 3/3/2012 1/1/2013
Original expiry date
24/4/2014 4/6/2014 2/12/2014 23/1/2015 10/9/2015 31/12/2014 31/12/2015
Extended expiry date*
30/6/2015 4/6/2015
– 23/1/2016 10/9/2016 31/12/2015 31/12/2016
*
The expiry dates of all tranches were extended on 28 August 2013. Among the 3,275,000 unit options
of Tranche One, the expiry date of 175,000 unit options remained unchanged on 24 April 2014.
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