FOR IMMEDIATE RELEASE 15 January 2010
CAIRN ENERGY PLC ("Cairn" or "the Company")
Interests of Directors / Persons Discharging Managerial Responsibility ("PDMRs")
in the Company's Shares - Replacement
1. Vesting of awards under the Company's Replacement Long Term Incentive Plan ("Replacement LTIP")
At the Company's Extraordinary General Meeting held on 21 December 2009 shareholder approval was received for the conversion of the "Capricorn Unit Awards" previously made under the Company's Long Term Incentive Plan (2006) into awards over its ordinary shares of 8/13 pence each ("Ordinary Shares"). These "Converted Awards" over Ordinary Shares were subsequently granted on 22 December 2009 under the rules of the Replacement LTIP.
Cairn announces that, on 14 January 2010, Converted Awards held by the Executive Directors and a PDMR vested in respect of a total of 6,482,903 Ordinary Shares in accordance with the rules of the Replacement LTIP. Details of these vestings are as follows:-
Executive Director / PDMR |
Number of Ordinary Shares originally subject to Converted Award |
Number of Ordinary Shares that vested on 14 January* |
Sir Bill Gammell |
953,033 |
1,267,533 |
Dr Mike Watts |
1,042,379 |
1,386,364 |
Malcolm Thoms |
297,823 |
396,104 |
Phil Tracy |
595,646 |
792,209 |
Jann Brown |
496,371 |
660,173 |
Simon Thomson |
744,557 |
990,260 |
Richard Heaton |
744,557 |
990,260 |
*On the basis that the Company's total shareholder return over the performance period applicable to these Converted Awards was (i) above the upper decile ranking in the specified comparator group; and (ii) in excess of 150%, the rules of the Replacement LTIP required a "multiplier" of 1.33 to be applied in determining the number of Ordinary Shares that vested.
Following the above vesting, a total of 2,652,257 Ordinary Shares acquired by the Executive Directors' / PDMR were sold on their behalf at a price of £3.6125 per Ordinary Share on 14 January 2010 in order to fund the tax and national insurance liabilities arising on vesting. The balance of the Ordinary Shares acquired are subject to an extended holding period during which they will be held by the Company's Employees' Share Trust (the "Trust") as nominee for each of the individuals. This holding period (during which the Ordinary Shares cannot be sold and may be forfeited in certain specified circumstances) will normally expire on 9 January 2013. Details of these sales / withholdings are set out below:
Executive Director / PDMR |
Number of Ordinary Shares acquired on vesting that were sold on 14 January 2010 |
Number of Ordinary Shares acquired on vesting that are subject to holding period |
Sir Bill Gammell |
518,568 |
748,965 |
Dr Mike Watts |
567,183 |
819,181 |
Malcolm Thoms |
162,052 |
234,052 |
Phil Tracy |
324,105 |
468,104 |
Jann Brown |
270,087 |
390,086 |
Simon Thomson |
405,131 |
585,129 |
Richard Heaton |
405,131 |
585,129 |
2. Vesting of awards under the Company's Long Term Incentive Plan (the "2006 LTIP")
Cairn also announces that, on 14 January 2009, a total of 1,797,472 Ordinary Shares vested in favour of the Executive Directors and a PDMR in respect of "Cairn India Awards" originally granted on 29 March 2007 under the 2006 LTIP. Details of these vestings are as follows:
Executive Director / PDMR |
Number of Cairn India Units originally subject to Cairn India Award |
Number of Cairn India Units that vested on 14 January 2010 |
Number of Ordinary Shares to which the individual became entitled as a consequence of vesting |
Sir Bill Gammell |
515,118 |
412,979 |
452,907 |
Dr Mike Watts |
187,803 |
150,564 |
165,121 |
Malcolm Thoms |
482,923 |
387,167 |
424,600 |
Phil Tracy |
321,949 |
258,112 |
283,067 |
Jann Brown |
268,291 |
215,093 |
235,889 |
Simon Thomson |
134,145 |
107,546 |
117,944 |
Richard Heaton |
134,145 |
107,546 |
117,944 |
*The number of Ordinary Shares to which a participant became entitled on the vesting of the above Cairn India Awards was calculated by reference to (i) a fair market value per Cairn India Limited share of INR 293.15 (being the closing price of such a share on the day preceding the vesting date); and (ii) a market value per Ordinary Share of £3.62 (being the closing middle market quotation of an Ordinary Share on the day preceding the vesting date).
In accordance with the rules of the 2006 LTIP, 50% of the above Ordinary Shares have been transferred to the relevant individuals by the trustee of the Trust. The remaining 50% of the Ordinary Shares will be withheld by the Trust and will normally be released to the individuals after one year.
Following the above transfer, a total of 764,607 Ordinary Shares were sold on behalf of the Executive Directors / PDMR at a price of £3.625 per Ordinary Share on 15 January 2010.
Details of these sales / withholdings are set out below:
Executive Director / PDMR |
Number of Ordinary Shares released on vesting |
Number of Ordinary Shares sold on 15 January 2010 |
Number of Ordinary Shares that remain subject to holding period |
Sir Bill Gammell |
226,453 |
92,326 |
226,454 |
Dr Mike Watts |
82,560 |
82,560 |
82,561 |
Malcolm Thoms |
212,300 |
212,300 |
212,300 |
Phil Tracy |
141,533 |
141,533 |
141,534 |
Jann Brown |
117,944 |
117,944 |
117,945 |
Simon Thomson |
58,972 |
58,972 |
58,972 |
Richard Heaton |
58,972 |
58,972 |
58,972 |
3. Additional transactions by Directors and PDMR
Finally, Cairn also announces that, on 15 January 2009, the Non-Executive Chairman, certain Executive Directors and a PDMR sold a further 2,127,334 Ordinary Shares at a price of £3.625 per share; and that Malcolm Thoms' spouse purchased 266,299 shares at a price of £3.625 per share.
Details of these transactions are as follows:
Director / PDMR |
Number of Ordinary Shares sold on 15 January 2010 |
Number of Ordinary Shares purchased on 15 January 2010 |
Norman Murray |
200,000 |
- |
Sir Bill Gammell |
384,684 |
- |
Dr Mike Watts |
278,960 |
- |
Malcolm Thoms |
488,690 |
266,299 |
Phil Tracy |
- |
- |
Jann Brown |
375,000 |
- |
Simon Thomson |
- |
- |
Richard Heaton |
400,000 |
- |
In addition to the above, Sir Bill Gammell today gifted a total of 88,000 Ordinary Shares to three charitable trusts.
4. Summary of current holdings of Directors / PDMR
Following this announcement, the Directors' / PDMR's beneficial interests in the Ordinary Shares of the Company are as follows:-
Director / PDMR |
Previous Ordinary Shares1 |
Current Ordinary Shares2 |
% Issued Share Capital |
Outstanding Awards under the 2006 LTIP |
Outstanding Awards under Replacement LTIP |
Outstanding Awards under 2009 LTIP |
|
|
|
|
|
Cairn India Units |
Ordinary Shares (subject to holding period) 3 |
Ordinary Shares |
Ordinary Shares |
Norman Murray |
400,000 |
200,000 |
0.014 |
|
- |
- |
- |
Hamish Grossart |
50,000 |
50,000 |
0.004 |
|
- |
- |
- |
Todd Hunt |
182,800 |
182,800 |
0.013 |
|
- |
- |
- |
Mark Tyndall |
40,620 |
40,620 |
0.003 |
|
- |
- |
- |
Iain McLaren |
20,000 |
20,000 |
0.001 |
|
- |
- |
- |
Dr Jim Buckee |
33,620 |
33,620 |
0.002 |
|
- |
- |
- |
Sir Bill Gammell |
3,521,370 |
3,931,778 |
0.272 |
223,600 |
226,454 |
546,291 |
674,000 |
Dr Mike Watts |
1,878,960 |
2,419,181 |
0.173 |
81,520 |
82,561 |
597,507 |
655,000 |
Malcolm Thoms |
488,690 |
500,351 |
0.036 |
139,750 |
212,300 |
341,432 |
421,000 |
Phil Tracy |
0 |
468,104 |
0.034 |
139,750 |
141,534 |
341,432 |
421,000 |
Jann Brown |
381,110 |
396,196 |
0.027 |
116,460 |
117,945 |
284,527 |
491,000 |
Simon Thomson |
13,000 |
598,129 |
0.043 |
58,230 |
58,972 |
426,790 |
491,000 |
Richard Heaton |
600,000 |
785,129 |
0.056 |
0 |
58,972 |
569,054 |
351,000 |
1 The previous Ordinary Shares are those disclosed in the directors' interests announcement dated 22 December 2009 and exclude the shares which vested on 14 January 2010.
2 On the vesting of Converted Awards under the Replacement LTIP, the Ordinary Shares acquired by a participant are beneficially owned by him / her throughout the holding period. As a result, these Ordinary Shares have been included in the second column of the above table.
3 Under the 2006 LTIP, any Ordinary Shares not released immediately on vesting are not beneficially owned by the participant until the expiry of the one year holding period. As a result, these Ordinary Shares have not been included in the second column of the above table.