8-K

CRH PUBLIC LTD CO 8-K Report (Jan 15, 2008)

Filed January 15, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) announced a transaction in its own shares on January 15, 2008, concerning activity on January 14, 2008. The company, through UBS Limited acting on its behalf, repurchased 73,600 ordinary shares at prices ranging from EUR23.10 to EUR23.69 per share. These acquired shares will be held as treasury shares, a common practice for companies to manage their share capital. This repurchase program indicates management's confidence in the company's valuation or a strategy to enhance shareholder value through a reduction in outstanding shares. Investors should note the number of shares held in treasury and the resulting issued share count, which affects metrics like earnings per share. The transaction itself is relatively small in the context of CRH's total shares outstanding, suggesting it's a tactical move rather than a large-scale buyback.

Key Highlights

  • 1CRH plc repurchased 73,600 ordinary shares on January 14, 2008.
  • 2The share repurchase was executed by UBS Limited on behalf of CRH.
  • 3The purchase prices ranged between EUR23.10 and EUR23.69 per ordinary share.
  • 4The acquired shares will be held as treasury shares.
  • 5Following this transaction, CRH plc holds 534,975 ordinary shares in treasury.
  • 6The number of ordinary shares currently in issue (excluding treasury shares) is 546,692,219.

Frequently Asked Questions

The primary purpose of this share repurchase, as indicated by the shares being held as treasury shares, is likely to manage the company's share capital. This can be done for various reasons, including offsetting dilution from employee stock options, having shares available for future acquisitions, or signaling management's belief that the company's stock is undervalued, potentially boosting shareholder value.

The repurchase of 73,600 shares is relatively small when compared to the total number of ordinary shares in issue, which is over 546 million (excluding treasury shares). This suggests it is a tactical move rather than a major reduction of outstanding shares.

Treasury shares are shares that a company has repurchased from the open market but has not canceled. These shares are no longer considered outstanding for voting or dividend purposes and do not earn dividends. Companies often hold treasury shares to use in employee stock plans, for mergers and acquisitions, or to reduce the number of outstanding shares to enhance per-share metrics.

UBS Limited is an investment bank or financial services firm. In this context, they acted as an agent or broker, executing the share repurchase transaction on behalf of CRH plc, purchasing the shares from the open market according to the company's instructions.