Confidential information - decrease of the strike price of the options granted under the stock option plan adopted by the Company (28/2013)
The Management Board of Netia SA (“Netia” or the “Company”), Poland's largest alternative provider of fixed-line telecommunications services, hereby announces that on 28 June 2013 the Supervisory Board of Netia adopted a resolution on decreasing by 16 groszy the strike price of all existing options issued to the Management board Members and the employees of the Company and its subsidiaries in connection with the stock option plan for the years 2011-2020 adopted by the Company (the “Plan”).
The reason for decreasing the strike price of all the existing options granted to the participants of the Plan was the acquisition by the Company on the 28 May 2013 of 16,012,630 of its shares for the price of PLN 8 per share in the performance of the share buy-back program conducted by the Company. The purchase by the Company of its own shares on the terms described above had an impact on the market price of the Company’s shares equivalent to a dividend payment therefore it resulted in a decrease of the market price of the Company’s shares and a corresponding decrease of the value of all the existing options granted to the participants of the Plan (the detailed mechanism with regards to the swap of the options concerning the Company’s shares was described in the current report No. 10/2011 dated 25 February 2011).
According to the Plan the Supervisory Board is entitled to adjust the strike price of the options in order to compensate the loss incurred by the Plan participants in the form of the decrease of the value of the received options as a result of the purchase by the Company of its own shares.