8-K

CRH PUBLIC LTD CO 8-K Report (Jan 31, 2008)

Filed January 31, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on January 31, 2008, reporting on significant share transactions that occurred on January 30, 2008. The company repurchased a substantial number of its own ordinary shares, which will be held as treasury shares. This move indicates management's confidence in the company's valuation and a potential strategy to return value to shareholders by reducing the number of outstanding shares. Furthermore, CRH transferred shares to participants in its employee share schemes. These transactions affect the company's share count and treasury stock balance, which are important metrics for investors evaluating dilution, share buyback programs, and overall capital management. Investors should note the prices at which shares were repurchased compared to the prices at which they were transferred to employees, as this can provide insights into the company's view of its share value.

Key Highlights

  • 1CRH repurchased 244,767 Ordinary Shares on January 30, 2008, through UBS Limited.
  • 2The repurchased shares will be held as Treasury Shares.
  • 3CRH transferred 52,282 Ordinary Shares to participants in its employee share schemes on January 30, 2008.
  • 4The share repurchase prices ranged from EUR25.78 to EUR26.38 per share.
  • 5The share transfer prices to employees ranged from EUR12.6416 to EUR19.68 per share.
  • 6Following these transactions, CRH holds 1,873,848 Ordinary Shares in Treasury.
  • 7The total number of Ordinary Shares in issue, excluding Treasury Shares, is 545,353,346.

Frequently Asked Questions

The primary purpose appears to be a share repurchase program aimed at reducing the number of outstanding shares and potentially returning value to shareholders. The company also transferred shares as part of its employee share schemes.

Treasury Shares are shares that a company has repurchased from the open market. CRH holds these shares as Treasury Shares, which means they are issued but not outstanding and do not carry voting rights or receive dividends. Companies often hold treasury shares for various reasons, including reissuing them for employee stock options, acquisitions, or to offset dilution from existing stock plans.

CRH repurchased its shares at prices between EUR25.78 and EUR26.38, while shares transferred to employees were at lower prices, ranging from EUR12.6416 to EUR19.68. This significant difference suggests that the employee share scheme awards are priced considerably lower than the market rate at which the company is buying back its stock.

The repurchase of 244,767 shares will decrease the number of outstanding shares, assuming these are not immediately reissued. The transfer of 52,282 shares to employees, if from treasury stock or newly issued shares, would also impact the outstanding share count depending on the origin of those shares.