8-K

CRH PUBLIC LTD CO 8-K Report (Apr 29, 2008)

Filed April 29, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed a Form 6-K, reporting on a share repurchase program. On April 28, 2008, the company, through its agent Davy, purchased 55,000 ordinary shares at prices ranging from EUR24.20 to EUR24.52 per share. These repurchased shares will be held as treasury shares, a common practice for companies looking to manage their outstanding share count and potentially return value to shareholders. Following this transaction, CRH now holds 10,173,961 ordinary shares in treasury. The total number of ordinary shares outstanding, excluding treasury shares, stands at 537,053,233. This update indicates ongoing capital management activities by CRH, which investors may view as a signal of management's confidence in the company's valuation or a strategy to enhance earnings per share.

Key Highlights

  • 1CRH plc conducted a share repurchase on April 28, 2008.
  • 255,000 ordinary shares were purchased.
  • 3The purchase price per share ranged between EUR24.20 and EUR24.52.
  • 4The repurchased shares will be held as treasury shares.
  • 5Following the transaction, CRH holds 10,173,961 ordinary shares in treasury.
  • 6The total number of ordinary shares in issue (excluding treasury shares) is 537,053,233.

Frequently Asked Questions

Treasury shares are company stock that have been repurchased by the issuer. Companies hold them for various reasons, including to offset dilution from stock options or employee stock purchase plans, to use for future acquisitions, or to return capital to shareholders by reducing the number of outstanding shares, which can potentially increase earnings per share.

While the filing doesn't explicitly state the reason, share repurchases are typically undertaken when management believes the company's stock is undervalued, as a way to return excess cash to shareholders, or to manage the share count for earnings per share calculations.

A reduction in the number of outstanding shares (excluding treasury shares) can signal that the company is returning value to its shareholders. It can also lead to an increase in earnings per share (EPS) if the company's net income remains the same, as the net income is divided by fewer shares.

Davy is acting as the agent or broker on behalf of CRH plc to execute the share purchases in the market. They are purchasing the shares on the company's behalf.