Mr Price Group’s Strategic Moves: Directors Awarded R54M, Hedging Transactions Signal Financial Precision

  • Hedging Transactions: Mr Price Group executed hedging transactions involving 775,677 European call options, totaling R118.5 million.
  • Director Awards: Directors and the company secretary were granted Share Appreciation Rights and Conditional Rights with a total value exceeding R54 million.
  • Strategic Commitment: The awards, authorized by the committee, highlight the company's commitment to aligning leadership interests with performance goals.
By Lethabo Ntsoane

Mr Price Group Limited has disclosed notable transactions involving its Long Term Incentive Scheme (LTI) and the grant of Share Appreciation Rights (SARs) and Conditional Rights to directors and the company secretary.

Hedging Transactions in Long Term Incentive Scheme (LTI)

In accordance with the JSE Limited Listings Requirements, Mr Price Group has reported hedging transactions related to its Long Term Incentive Scheme. The key details are as follows:

  • Scheme Name: Mr Price Group Long Term Incentive Scheme
  • Class of Security: European call option over Mr Price Group ordinary shares
  • Nature of Transaction:
    Hedging transaction for SARs under the LTI
  • Type of Trade: European call option
  • Date of Transaction: 6 December 2023
  • Expiry Date: 1 September 2026
  • Number of Options: 775,677
  • Strike Price per Option: R138.38
  • Notional Value: R118,507,932 (based on a spot reference price of R152.78)
  • Nature of Interest: Indirect, beneficial
  • Clearance Obtained: Yes

Dealings in Securities by Directors and Company Secretary

Complying with the Listings Requirements of the JSE Limited, Mr Price Group granted Share Appreciation Rights (SARs) and Conditional Rights to directors and the company secretary on 23 November 2023. The off-market acceptance of these awards occurred on 6 December 2023.

Directors

DirectorShare Appreciation RightsConditional RightsTotal Face Value of TransactionNature of Interest
Mark Blair119,327119,327R33,025,050Direct beneficial
Praneel Nundkumar62,63862,638R17,335,750Direct beneficial

Company Secretary

Company SecretaryShare Appreciation RightsConditional RightsTotal Face Value of TransactionNature of Interest
Janis Cheadle13,42413,424R3,715,239Direct beneficial

Total face value of the transaction is not representative of the future award to be made. The award value is based on the share price at the time of vesting and the award strike price subject to performance conditions being met.

The awards are set to vest on 23 November 2026, contingent upon specified performance conditions being met. The grant and acceptances were duly authorized by the Chairman and the Remuneration and Nominations Committee.

Implications and Next Steps

These transactions and awards demonstrate Mr Price Group’s commitment to aligning the interests of its leadership with the company’s long-term performance. The strategic hedging transactions under the Long Term Incentive Scheme provide a structured approach to managing risk while fostering a sense of ownership among employees.

Investors and stakeholders will keenly watch the performance conditions leading up to the vesting date, as the company continues to navigate the dynamic landscape of the retail industry. Mr Price Group remains a key player in South Africa’s corporate landscape, and these recent developments add a layer of transparency to its financial operations.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo