8-K

CRH PUBLIC LTD CO 8-K Report (Apr 24, 2008)

Filed April 24, 2008For Securities:CRH

Summary

CRH plc announced on April 24, 2008, a series of transactions involving its ordinary shares. On April 23, 2008, the company repurchased 100,000 of its own shares through its broker, Davy, at prices ranging from EUR23.49 to EUR23.60. These repurchased shares are to be held as treasury shares, which can be reissued or cancelled later. This action indicates a strategic move by CRH to manage its capital structure and potentially return value to shareholders. Additionally, the company transferred 29,989 ordinary shares from treasury to participants in its employee share schemes. These shares were transferred at prices between EUR13.15 and EUR20.79, reflecting different award levels. Following these transactions, CRH holds 9,966,461 shares in treasury, with an issued share capital of 537,260,733 ordinary shares excluding treasury shares. Investors should note that share repurchases can signal management's confidence in the company's valuation and its ability to generate future earnings.

Key Highlights

  • 1CRH plc repurchased 100,000 ordinary shares on April 23, 2008, at prices between EUR23.49 and EUR23.60.
  • 2The repurchased shares will be held as treasury shares.
  • 3CRH transferred 29,989 ordinary shares to participants in its employee share schemes at prices between EUR13.15 and EUR20.79.
  • 4Following these transactions, CRH holds 9,966,461 ordinary shares in treasury.
  • 5The total number of ordinary shares in issue, excluding treasury shares, is 537,260,733.

Frequently Asked Questions

Share repurchases, also known as share buybacks, can signal management's belief that the company's stock is undervalued. It can also be a way to return capital to shareholders, increase earnings per share (EPS) by reducing the number of outstanding shares, and improve the company's financial ratios.

Treasury shares are shares that a company has repurchased from the open market but has not yet retired (cancelled). Companies hold treasury shares for various reasons, including to fulfill obligations under employee stock option plans, to use in future acquisitions, or to reissue to the market at a later date. They do not have voting rights and do not receive dividends.

CRH transferred existing treasury shares to employees participating in its share schemes. The prices at which these shares were transferred (between EUR13.15 and EUR20.79) likely reflect the terms of the specific employee stock options or awards granted, such as the exercise price or vesting conditions.

The repurchase of 100,000 shares slightly decreases the total number of shares outstanding if they were considered retired, but since they are held as treasury shares, the number of issued shares remains the same, with a reduction in shares available to the public market. The transfer of 29,989 shares to employees also reduces the number of shares held in treasury but does not change the total number of issued shares.