DBS Vickers 2015-08-25: Yoma Strategic Holdings - Grant of new options to CEO; Aberdeen ups stake in company.

YOMA STRATEGIC HOLDINGS LTD Z59.SI

Grant of new options to CEO; Aberdeen ups stake in company 


CEO Melvyn Pun’s new share options fixed at S$0.36, with pre-determined measurable performance targets. 

  • CEO Yoma Strategic Holdings’ CEO Melvyn Pun has offered to include the following restrictions to his options to demonstrate his confidence on the performance and further growth of the company, as well as management’s strong commitment to enhance shareholders’ returns. 
    1. The Option will be a Market Price Option at a subscription price of S$0.36 as opposed to the 20% discount to the Market Price 
    2. The Option may only be exercised upon certain prescribed performance targets relating to the growth of the group’s earnings per share and the level of non-real estate revenue of the Group being met. 
    3. The Exercise Period of the Option shall only commence after the 5th anniversary of the Date of Grant instead of the usual 2 year period. Going forward, the management intends to use Yoma’s Performance Share Plan where there are pre-determined measurable performance targets set out to help align management’s and shareholders’ interests. 

Our thoughts: 

  • By linking share options to the performance of the company and a deferment from the usual 20% discount to market price further underpins the confidence of the group’s performance going forward. It also aligns management’s and shareholders’ interests. 



Major shareholder, Aberdeen has increased shareholding from 9% to 10%.

Our thoughts: 

  • Aberdeen, a major global investor raising its stake adds confidence of the current implied value at current levels. 
  • Maintain BUY and S$0.78 TP.


Derek TAN | http://www.dbsvickers.com/ DBS Securities 2015-08-25
BUY Maintain BUY 0.78 Same 0.78


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