Sun Art Retail proposes changes to employee benefit schemes

Sun Art Retail Group Limited is proposing amendments to its Auchan Scheme and RT-Mart Scheme, which are employee trust benefit schemes. The board has resolved to cease granting further trust units under both schemes, aligning with a strategic shift towards more flexible incentive mechanisms. The management committees of both schemes have approved this cessation.

As of the announcement date, the Auchan Scheme holds 2,117,169.61 trust units and the RT-Mart Scheme holds 2,667,669.6 trust units currently held by selected participants. Of these, 2,071,575.71 trust units and 2,007,950.33 trust units respectively remain under their restricted period. The proposed amendments will regulate the redemption of existing trust units and optimize scheme rules for the remaining term.

Key changes include the transfer of acquired trust units back to the settlor at a transaction price, with units purchased via employee's contribution transferred on the first transaction date after the resolution. Units acquired through employer's contribution and retirement saving contribution will be gradually transferred to the settlor in instalments over five years, with a minimum 12-month holding period. Furthermore, trust units held by participants who commit criminal acts or serious disciplinary violations will be bought back at nil consideration if acquired through employer's or retirement saving contributions. These amendments require shareholder approval at an Extraordinary General Meeting.