8-K

CRH PUBLIC LTD CO 8-K Report (May 2, 2007)

Filed May 2, 2007For Securities:CRH

Summary

CRH plc filed an 8-K report on May 2, 2007, to announce details regarding its Scrip Dividend Scheme for the 2006 Final Dividend. The company reported that 42.27% of its ordinary shareholders opted to receive shares instead of cash for their dividend payment. This resulted in the allotment of 1,922,128 new ordinary shares of EUR0.32 each. Investors should note that these new shares are expected to be admitted to the Official Lists of the Irish Stock Exchange and the U.K. Listing Authority, and will commence trading on the London Stock Exchange on May 14, 2007. This scrip dividend alternative offers shareholders the opportunity to increase their stake in CRH plc without immediate cash outlay, which can be a tax-efficient method for reinvestment.

Key Highlights

  • 142.27% of CRH plc's ordinary shareholders elected to receive shares instead of cash for the 2006 Final Dividend.
  • 2A total of 1,922,128 new ordinary shares of EUR0.32 each have been allotted under the Scrip Dividend Scheme.
  • 3The 2006 Final Dividend is scheduled to be paid on May 14, 2007.
  • 4An application will be made to list the new shares on the Irish Stock Exchange and the U.K. Listing Authority.
  • 5Trading of the new shares on the London Stock Exchange is expected to begin on May 14, 2007.
  • 6This filing is made under Form 6-K, indicating it's a report of a foreign issuer.

Frequently Asked Questions

A scrip dividend alternative allows shareholders to choose between receiving their dividend payment in cash or in the form of additional shares of the company's stock, usually at a slight discount or with an incentive to encourage participation.

If you elected to receive shares, your total number of CRH plc shares will increase. The new shares are issued at a specific value, effectively reinvesting your dividend into more equity in the company.

Dealing in the newly allotted ordinary shares is expected to commence on Monday, May 14, 2007, on the London Stock Exchange, as well as being listed on the Irish and U.K. stock exchanges.

Companies often offer scrip dividends to conserve cash, as it allows them to reinvest earnings back into the business while still providing value to shareholders. It can also be a way to encourage long-term investment and potentially offer tax advantages to shareholders.