8-K

CRH PUBLIC LTD CO 8-K Report (Oct 25, 2006)

Filed October 25, 2006For Securities:CRH

Summary

CRH plc (CRH) announced on October 24, 2006, details regarding its 2006 Interim Dividend Scrip Alternative. A significant portion of ordinary shareholders, representing 31.55%, opted to receive new ordinary shares in lieu of cash for their interim dividend payment, which was scheduled for November 3, 2006. This decision resulted in the allotment of 381,691 ordinary shares of EUR0.32 each. This scrip dividend option allows shareholders to increase their stake in CRH without immediate cash outlay, potentially indicating confidence in the company's future growth prospects. The newly issued shares are expected to be admitted to the official lists of the Irish Stock Exchange and the U.K. Listing Authority, as well as trading on the London Stock Exchange, with dealings commencing on November 3, 2006. Investors should note this as a mechanism for capital retention and potential share price appreciation if the company performs well.

Key Highlights

  • 1CRH plc has announced the outcome of its 2006 Interim Dividend Scrip Alternative.
  • 231.55% of Ordinary Shareholders elected to receive shares instead of cash for the interim dividend.
  • 3A total of 381,691 Ordinary Shares (EUR0.32 nominal value each) have been allotted.
  • 4The scrip dividend option was available for the interim dividend payable on November 3, 2006.
  • 5Applications will be made for the new shares to be listed on the Irish Stock Exchange and the U.K. Listing Authority.
  • 6Trading of the new shares on the London Stock Exchange is expected to begin on November 3, 2006.
  • 7This indicates a shareholder preference for reinvesting dividends into company stock.

Frequently Asked Questions

A Scrip Dividend Scheme allows shareholders to choose between receiving their dividend payment in cash or in the form of additional shares in the company, often at a slight discount to market value or with other incentives. In this case, CRH shareholders could elect to receive new ordinary shares instead of cash for their 2006 interim dividend.

Shareholders might choose shares over cash if they believe the company's stock will appreciate in value, allowing them to potentially benefit more in the long run than from the immediate cash dividend. It also allows them to increase their investment in the company without using additional personal funds.

The allotment of new shares increases the total number of outstanding shares of CRH. This can slightly dilute the ownership percentage of existing shareholders who did not participate in the scrip dividend. However, it also signifies that the company is retaining cash that would have otherwise been paid out to shareholders, which can be used for reinvestment in the business or debt reduction.

Dealing in the newly allotted ordinary shares is expected to commence on Friday, November 3, 2006, on the London Stock Exchange and other relevant exchanges.