KUCHING: Borneo Oil Bhd has terminated its existing employees’ share option scheme (ESOS), which was set to expire next year.
The existing ESOS was implemented on June 22, 2020, for a five-year period, ending on June 21, 2025.
Under the existing ESOS, Borneo said that 1,795,500,000 options were granted and fully exercised.
“There are no outstanding options under the existing ESOS that were granted but remain unexercised. The board of directors does not intend to grant any further options under the existing ESOS,” the company said in a filing with Bursa Malaysia.
On December 19, 2024, Borneo obtained shareholders’ approval at an extraordinary general meeting (EGM) for the proposed establishment of a new ESOS of up to 15 per cent of the company’s total issued shares (excluding treasury shares, if any).
The new ESOS will be implemented after the termination of the existing scheme is completed.
The new ESOS involves the granting of options to subscribe for Borneo shares to eligible directors (including non-executive directors) and employees of the Borneo group (excluding dormant subsidiaries) at specified prices to be determined.
According to the company, the new ESOS aims to recognise and reward eligible individuals for their contributions and services, which are considered vital to operations. It is intended to motivate employee performance, fostering sustainable growth and profitability for the group.
Additionally, it seeks to reinforce loyalty and a sense of belonging by allowing eligible participants to directly engage in the company’s equity, incentivising them to contribute actively to the group’s future growth and success.
Another objective of the ESOS is to attract prospective employees with relevant skills and experience by offering more competitive compensation packages.
Meanwhile, Borneo, which owns the home-grown fast food restaurant chain SugarBun, is rewarding its shareholders with bonus warrants.
The company will issue up to 3.52 billion Warrant E shares, on the basis of one warrant for every four existing ordinary shares held by shareholders on an entitlement date, which will be announced in early January 2025.
In addition to rewarding shareholders, Borneo said that the bonus warrants provide an option to increase their equity participation at a predetermined price during the warrant tenure, allowing them to benefit from future growth and potential capital appreciation.
The company added that the bonus issue of Warrants E will strengthen its financial position and capital base. The warrants could potentially provide additional working capital when exercised, without incurring interest costs, unlike bank borrowings.
Borneo expects to complete the bonus issue of Warrants E by the end of January 2025.
