8-K

CRH PUBLIC LTD CO 8-K Report (Apr 14, 2008)

Filed April 14, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on April 14, 2008, detailing recent transactions involving its own shares. The report highlights a share repurchase program executed on April 11, 2008, where CRH purchased 80,000 ordinary shares at prices ranging from EUR23.50 to EUR24.20 per share. These repurchased shares will be held as treasury shares, a move often interpreted as a signal of management's confidence in the company's valuation and a way to potentially boost shareholder value. In addition to the buyback, CRH also transferred 60,450 ordinary shares to participants in its employee share schemes. These shares were transferred at prices between EUR13.15 and EUR20.91, and at GBP14.37. Following these transactions, CRH reported holding 9,302,939 ordinary shares in treasury, with 537,924,255 ordinary shares outstanding (excluding treasury shares). This update provides transparency on CRH's capital management activities and its ongoing engagement with employee incentive programs.

Key Highlights

  • 1CRH announced a share repurchase of 80,000 ordinary shares on April 11, 2008, at prices between EUR23.50 and EUR24.20.
  • 2The repurchased shares will be held as treasury shares.
  • 3CRH transferred 60,450 ordinary shares to participants in its employee share schemes on April 11, 2008.
  • 4The transfer prices for employee shares ranged from EUR13.15 to EUR20.91 and GBP14.37.
  • 5Following these transactions, CRH holds 9,302,939 ordinary shares in treasury.
  • 6The total number of ordinary shares outstanding, excluding treasury shares, is 537,924,255.

Frequently Asked Questions

Repurchasing its own shares can be a strategy to return capital to shareholders, potentially increase earnings per share by reducing the number of outstanding shares, and signal management's belief that the company's stock is undervalued. The shares are being held as treasury shares, which can be used for future employee stock options, acquisitions, or other corporate purposes.

This action reflects the company's commitment to its employee incentive programs. Transferring shares to employees as part of these schemes helps align employee interests with those of shareholders and can serve as a form of compensation and retention.

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. Companies can hold them for various purposes, such as fulfilling stock option plans, using them in acquisitions, or reissuing them to the public.

The share repurchase of 80,000 shares reduces the number of shares outstanding. The transfer of 60,450 shares to employees also impacts the number of shares outstanding, depending on whether these were previously treasury shares or newly issued shares. The net effect is that CRH now holds 9,302,939 treasury shares, and the number of shares in issue (excluding treasury shares) is 537,924,255.