GTC continues its interrupted EGM from 12 December today. We remind that agenda include approval of issuance of up to 2m shares relating to “phantom shares” compensation plan for management, which gives the Company an option to settle this compensation either in cash or by issuing new shares.
Our view:
2m shares is maximum potential number which can be issued over the period of 4 years and could be lower should the compensation is settled in cash. 2m shares represent less then 1% of the total number of outstanding shares. However as the strike price of these phantom shares is PLN 22.5, the dilution effect is less than by 2m shares. We don’t expect that any outcome of EGM to have material impact on today’s share price.