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Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
23 Share-based payment plans
continued
23.3
Black Managers Trust II and Brimstone participation right schemes (equity settled)
continued
Black Managers Trust II
Originally allocations of vested rights to these shares were made to a total number of 484 black
managers and are non-transferable.
The effective dates of these allocations were 31 January 2010 and 31 July 2010.
With effect from 31 December 2017, the black managers may elect to take delivery of the full benefit
of a portion of the shares allocated to them in accordance with their vested rights (after Tiger Brands has
exercised its right to repurchase a certain number of the shares from the Black Managers Trust II at the
subscription price of 10 cents per share).
The number of shares to be repurchased by Tiger Brands will be calculated in terms of a repurchase
formula, the inputs of which are similar to those as disclosed under the Brimstone heading above, other
than for the fact that 90% of any distributions declared by Tiger Brands are not received by the Black
Managers Trust II (as opposed to 85% in the case of Brimstone SPV) and the subscription price is
10 cents per share (as opposed to R7,40 in the case of the Brimstone SPV).
Upon termination of the trust on 31 December 2018, the black managers shall take delivery of all
benefits due to them, failing which these will be forfeited, and the Trustees shall transfer those benefits
and any unallocated Tiger Brands ordinary shares, or the net proceeds thereof, to the black managers
who are beneficiaries of the Black Managers Trust II at that time.
In calculating the IFRS 2 charge, the following input parameters were utilised to determine the fair value
of the rights granted to the beneficiaries of the Black Managers Trust II in terms of the BEE Phase II
transaction:
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The allocation date;
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The maturity date of the rights;
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The market price of the underlying equity as at the valuation date;
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The strike price of the rights;
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The expected volatility of the underlying equity over the life of the rights;
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The expected dividend yield on the underlying equity over the life of the rights;
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The risk-free interest rates over the life of the rights; and
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The prime interest rates over the life of the rights.