Summary
CRH Public Limited Company (CRH) has filed a Form 6-K detailing recent transactions involving its own shares. On January 23, 2008, the company repurchased 102,098 ordinary shares through UBS Limited at prices ranging from EUR23.817 to EUR24.10. These repurchased shares will be held as treasury shares. Additionally, CRH transferred 29,936 ordinary shares to participants in its employee share schemes on the same date. The prices for these transfers varied between EUR10.63 and EUR19.68, and also at GBP15.68 per share. These transactions impact the company's outstanding share count and treasury stock.
Key Highlights
- 1CRH repurchased 102,098 ordinary shares on January 23, 2008, at prices between EUR23.817 and EUR24.10.
- 2Repurchased shares will be held as treasury shares by CRH.
- 3CRH transferred 29,936 ordinary shares to employee share scheme participants.
- 4Share transfer prices ranged from EUR10.63 to EUR19.68 and GBP15.68.
- 5Following these transactions, CRH holds 1,470,592 ordinary shares in treasury.
- 6The total number of ordinary shares in issue, excluding treasury shares, is 545,756,602.
Frequently Asked Questions
While the filing doesn't explicitly state the reason, share repurchases are often undertaken by companies to return value to shareholders, reduce the number of outstanding shares (potentially increasing earnings per share), or to offset dilution from employee stock options.
Treasury shares are shares that a company has bought back from the open market. They are no longer outstanding and do not carry voting rights or the right to receive dividends. Companies may hold treasury shares for various purposes, including reissuing them for employee stock plans or future acquisitions.
Share repurchases can sometimes have a positive impact on stock prices by reducing supply and increasing demand. The transfer of shares to employees at a lower price than the market repurchase price is a common practice for compensation and incentive purposes.
The increase in treasury shares and the corresponding decrease in outstanding shares (excluding treasury) indicate that CRH is reducing its share count. This could be interpreted positively by investors as it might lead to higher earnings per share if profits remain constant.