8-K

CRH PUBLIC LTD CO 8-K Report (Jan 10, 2008)

Filed January 10, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on January 10, 2008, reporting a share repurchase program executed on January 9, 2008. The company, through its agent UBS Limited, purchased 85,672 of its own ordinary shares at prices ranging from EUR22.70 to EUR23.90 per share. These repurchased shares are designated to be held as treasury shares. This transaction increases CRH's treasury share count to 270,514 shares. The total number of ordinary shares outstanding, excluding treasury shares, is 546,956,680. This repurchase activity indicates the company's management is actively managing its capital structure and potentially signaling confidence in the company's valuation.

Key Highlights

  • 1CRH repurchased 85,672 ordinary shares on January 9, 2008.
  • 2The share purchases were conducted by UBS Limited on behalf of CRH.
  • 3The price per share ranged between EUR22.70 and EUR23.90.
  • 4The repurchased shares will be held as treasury shares.
  • 5CRH's treasury share balance increased to 270,514 shares following this transaction.
  • 6The total number of ordinary shares in issue, excluding treasury shares, stands at 546,956,680.

Frequently Asked Questions

While the specific purpose is not detailed in this filing, companies typically repurchase shares to reduce the number of outstanding shares, potentially increasing earnings per share, return on equity, and signaling management's belief that the stock is undervalued. It can also be used to offset dilution from employee stock options.

Treasury shares are shares that a company has repurchased from the open market. These shares are no longer considered outstanding and do not have voting rights or receive dividends. Companies hold them for various reasons, such as future acquisitions, employee stock plans, or to boost financial ratios.

This repurchase reduces the total number of outstanding shares by 85,672. The filing clarifies that the number of shares in issue, excluding treasury shares, is 546,956,680, indicating that the treasury shares are not counted towards this figure.

This price range provides investors with context on the market valuation of CRH shares at the time of the repurchase. It suggests that management believed the shares were trading within this valuation band, making it an opportune time for buybacks.