Maxis Berhad | Annual Report 2013

Maxis Berhad | Annual Report 2013 146 31 SHARE CAPITAL (CONTINUED) (b) ESOS (continued) The weighted average fair value of share options granted during the financial year determined using a modified Black Scholes model was RM0.41 (2012: RM0.28). The key inputs into the model were: GROUP AND COMPANY 2013 2012 RM’000 RM’000 Valuation assumptions: Weighted average share price at date of grant (per share) RM6.78 RM6.41 Exercise price (per share) RM6.78 RM6.41 Expected volatility 10.25% 9.8% Expected share option life 6.2 years 7.2 years Expected dividend yield per annum 5.2% 5.5% Risk-free interest rate per annum 3.8% 3.5% The volatility measured at the standard deviation of continuously compounded share returns is based on statistical analysis of daily share prices since the Company’s Initial Public Offering (“Listing”). Value of employee services received for issue of share options: GROUP COMPANY 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Share options granted to employees 4,353 2,427 4,353 2,427 Allocation to subsidiaries for share options granted to the employees of the subsidiaries – – (4,353) (2,427) Total expense recognised as share-based payment 4,353 2,427 – – 32 RESERVES (a) Merger relief Pursuant to Section 60(4)(a) of the Companies Act, 1965, the premium on the shares issued by the Company as consideration for the acquisition of the subsidiaries is not recorded as share premium. The difference between the issue price and the nominal value of shares issued is classified as merger relief. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 Continued