Business
Coats plc
Coats plc.
About this update from Coats Group Plc
[{"type":"text","content":"\n \nRNS Number : 6933G Guinness Peat Group PLC 16 May 2011 \n \n\n \nGUINNESS PEAT GROUP PLC\n \nANNOUNCEMENT\n \n \nGuinness Peat Group plc has today made awards to Paul Forman, Chief Executive, Coats plc and other senior employees of the Coats Group (Award Holders) pursuant to a new long term incentive plan (Awards). Coats plc is a wholly owned subsidiary within the GPG Group.\n \nThe Awards comprise a right to receive a cash amount upon the occurrence of certain events including: (i) a disposal of the majority of the Coats Group; (ii) a disposal of the majority of the businesses operated by the Coats Group; (iii) a change of control of GPG; (iv) at the time when the business operated by GPG is essentially the Coats business; and (v) 31 March 2014.\n \nThe amount potentially paid to an Award Holder in respect of their Award is calculated by reference to the value of the Coats Group at the time of the relevant event and having regard to the nature of the relevant transaction. Provided that the value of the Coats Group is greater than US$450m, Award Holders will share in an aggregate sum equivalent to the sum of: (i) 1.5% of the first US$600m of the value of the Coats Group; (ii) 10% of the value of the Coats Group greater than US$600m but less than or equal to US$900m; (iii) 12.5% of the value of the Coats Group greater than US$900m but less than or equal to US$1,350m; and (iv) 15% of the value of the Coats Group to the extent that it exceeds $1,350m. The aggregate payment payable under the CIP will be: (i) capped at 9.9% of the market capitalisation of GPG on 14 March 2011; and (ii) restricted by reference to a formula relating inter alia to the market capitalisation of GPG.\n \nHaving regard to the recently announced strategy to realise value with the stated possibility that Coats plc will be the sole retained investment of GPG, the Board of GPG believes that the Awards will incentivise the Award Holders to maximise the value of the Coats Group for its shareholder and consequently the shareholders of GPG and as such will be for the benefit of GPG and its shareholders.\n \n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nEnquiry details are:\n\n\n \n\n\n \n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nNew Zealand media:\n\n\nGeoff Senescall on:\n\n\n+6...