8-K

CRH PUBLIC LTD CO 8-K Report (Feb 7, 2008)

Filed February 7, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on February 7, 2008, to report a transaction involving the repurchase of its own shares. On February 6, 2008, CRH repurchased 450,000 ordinary shares through its agent, Davy, at prices ranging from EUR24.40 to EUR25.15 per share. These shares will be held as treasury shares. This share repurchase program indicates CRH's ongoing capital allocation strategy. The company's decision to buy back shares suggests management's confidence in the company's valuation and its ability to generate future cash flows, as well as a potential return of capital to shareholders. Investors should note the total number of shares held in treasury and the adjusted number of shares outstanding following this transaction.

Key Highlights

  • 1CRH repurchased 450,000 ordinary shares on February 6, 2008.
  • 2The repurchase was conducted by Davy on behalf of CRH.
  • 3Share prices for the buyback ranged from EUR24.40 to EUR25.15.
  • 4The acquired shares will be held as treasury shares.
  • 5Following the transaction, CRH holds 3,251,616 ordinary shares in treasury.
  • 6The number of ordinary shares in issue, excluding treasury shares, is 543,975,578.

Frequently Asked Questions

This Form 6-K filing reports on a specific transaction: CRH's repurchase of its own ordinary shares. It's a disclosure requirement for foreign private issuers like CRH when significant events occur.

Companies typically repurchase shares to return capital to shareholders, signal management's belief that the stock is undervalued, offset dilution from stock options, or to manage their capital structure more efficiently. It can be seen as a positive signal of the company's financial health and future prospects.

Treasury shares are shares that a company has repurchased but not retired. They are not considered outstanding for voting or dividend purposes and do not affect earnings per share calculations until they are retired or reissued. Holding them in treasury provides flexibility for future corporate actions, such as employee stock plans or acquisitions.

The repurchase reduces the total number of shares outstanding in the market. The filing states that excluding treasury shares, CRH has 543,975,578 ordinary shares in issue. The repurchased shares are added to the existing 3,251,616 treasury shares, increasing the total held in treasury.