8-K

CRH PUBLIC LTD CO 8-K Report (Oct 24, 2007)

Filed October 24, 2007For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed a Form 6-K, providing an update on its 2007 interim dividend. A significant portion of the company's ordinary shareholders, specifically 31.56%, elected to receive new CRH shares in lieu of cash dividends. This scrip dividend option allows the company to retain cash while rewarding shareholders with additional equity in the company. This decision by a substantial number of shareholders to opt for scrip shares indicates a potential confidence in CRH's future growth prospects, as they are choosing to reinvest in the company rather than take immediate cash. The issuance of 347,752 new ordinary shares will be subject to listing on the Irish Stock Exchange and the U.K. Listing Authority, with trading expected to begin on November 2, 2007. Investors should monitor the impact of this share issuance on the company's share count and potential dilution.

Key Highlights

  • 1CRH plc announced that 31.56% of its Ordinary Shareholders chose to receive shares instead of cash for the 2007 interim dividend.
  • 2A total of 347,752 new Ordinary Shares of EUR0.32 each were allotted under the Scrip Dividend Scheme.
  • 3The company is seeking admission of these new shares to the Official Lists of the Irish Stock Exchange and the U.K. Listing Authority.
  • 4Trading of the new shares on the London Stock Exchange is expected to commence on Friday, November 2, 2007.
  • 5This move allows CRH to conserve cash while providing shareholders with an opportunity to increase their stake in the company.
  • 6The filing was made on October 23, 2007, and pertains to events on October 22, 2007.

Frequently Asked Questions

A Scrip Dividend Scheme allows shareholders to elect to receive additional shares in the company, in lieu of a cash dividend payment. This allows the company to retain cash for operations or investment, while shareholders can increase their ownership in the company.

CRH issued a total of 347,752 new Ordinary Shares of EUR0.32 each as part of the scrip dividend.

Dealing in the new shares is expected to commence on Friday, November 2, 2007.

A significant uptake in the scrip dividend option (31.56%) suggests that a notable portion of CRH's shareholders may have confidence in the company's future performance and are willing to reinvest their dividend into additional equity, rather than taking cash.