Axiata Group Bhd said shareholders of its Sri Lankan subsidiary, Dialog Axiata PLC, have approved a long-term incentive plan that could see up to 184.01 million new Dialog shares issued to eligible employees and executive directors.
In a filing with Bursa Malaysia, Axiata said the plan was approved at Dialog’s extraordinary general meeting and became effective on Oct 3.
The maximum number of shares that may be issued under the plan represents 2% of Dialog’s current issued share capital. Axiata currently holds an effective 73.75% stake in Dialog, which is listed on the Colombo Stock Exchange.
Eligible participants include full-time and fixed-term employees of Dialog and its subsidiaries whose service has been confirmed, subject to additional criteria determined by the Dialog board.
No individual participant may receive more than 1% of Dialog’s total issued shares under the scheme at any one time.
The shares will be issued as non-cash consideration for services rendered, with employees not required to pay additional consideration or exercise any option.
The reference price for shares granted will be based on Dialog’s 30-market-day volume-weighted average share price preceding the grant date.
The shares will generally vest after a three-year continuous period, subject to individual performance requirements and Dialog achieving targets for return on invested capital and underlying profit after tax.
Any shares that fail to vest because performance conditions are not met will lapse, unless otherwise extended by Dialog’s board within the overall scheme period.
The vesting of shares under the plan must be completed within 10 years from the effective date.
Axiata said the incentive plan is intended to retain and reward high-performing employees, align staff interests with long-term shareholder value creation and support future talent attraction.
