China Evergrande’s EV unit grants share options to directors, 3,000 plus employees to ‘promote and support’ development
- China Evergrande New Energy Vehicle, which is developing the Hengchi car brand, has granted 323.72 million share options worth HK$1.26 billion (US$162 million) to three directors and 3,000 plus employees
- The options are exercisable from March 20 next year at HK$3.90 per share, 34 per cent higher than Monday’s closing price of HK$2.90
The three independent non-executive directors – Chau Shing-yim, Guo Jianwen and Xie Wu – were each given 300,000 share options. Chau is the chairman of the audit committee of the EV maker and its parent, while Guo and Xie are involved in the traditional Chinese medicine industry in the mainland.
The remaining 322.82 million share options were given to the staff, including scientific research personnel.
These share options “will help the group continuously promote and support the development of the company, ensure the interests of the group as a whole and its long-term development stability, enhance the corporate value of the company and achieve its long-term objectives,” China Evergrande New Energy Vehicle said.
The move to grant share options at this point of time can encourage and give employees confidence and a sense of stability without involving any cash flow from the company’s standpoint, said Stanley Chan, director of research at Emperor Securities.