8-K

CRH PUBLIC LTD CO 8-K Report (Mar 27, 2008)

Filed March 27, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed a Form 6-K to report significant transactions involving its own shares. On March 26, 2008, the company repurchased 172,034 ordinary shares through UBS Limited, which will be held as treasury shares. These repurchases occurred at prices ranging from EUR23.7210 to EUR24.40 per share, indicating a commitment to shareholder value or a belief in the undervaluation of the company's stock at these price levels. In addition to the share repurchase, CRH also transferred 32,210 ordinary shares to employees participating in its share schemes at prices between EUR12.6416 and EUR19.68. Following these transactions, CRH now holds 8,419,777 ordinary shares in treasury, with 538,807,417 ordinary shares outstanding (excluding treasury shares). These actions suggest active capital management and employee incentive programs.

Key Highlights

  • 1CRH repurchased 172,034 ordinary shares on March 26, 2008, via UBS Limited.
  • 2The share repurchase was conducted at prices between EUR23.7210 and EUR24.40 per share.
  • 3The repurchased shares will be held as treasury shares.
  • 4CRH transferred 32,210 ordinary shares to participants in its employee share schemes.
  • 5The transfer to employees occurred at prices ranging from EUR12.6416 to EUR19.68 per share.
  • 6Following these transactions, CRH holds 8,419,777 ordinary shares in treasury.
  • 7The number of outstanding ordinary shares, excluding treasury shares, is 538,807,417.

Frequently Asked Questions

While the filing doesn't explicitly state the reason, companies typically repurchase shares to reduce the number of outstanding shares, potentially increasing earnings per share (EPS), or because management believes the company's stock is undervalued. It can also be a way to return capital to shareholders.

Treasury shares are shares that a company has repurchased from the open market but has not yet retired. These shares are no longer outstanding and do not carry voting rights or the right to receive dividends. Companies can hold them for various purposes, such as to fulfill stock options or employee share purchase plans.

The repurchase price (EUR23.7210 - EUR24.40) reflects the market price at which CRH bought back its shares. The lower transfer price for employee share schemes (EUR12.6416 - EUR19.68) is typical as these are usually part of compensation or incentive programs where shares are provided to employees at a discount or for a nominal price, often based on the stock's value at the time of grant.

The repurchase of 172,034 shares and the transfer of 32,210 shares, while involving a gross movement, ultimately impact the company's treasury stock balance. The filing states that after these transactions, CRH holds 8,419,777 shares in treasury, and the number of shares in issue (excluding treasury shares) is 538,807,417. The net effect of the repurchase is a reduction in shares outstanding unless shares were issued to employees from treasury stock.