8-K

CRH PUBLIC LTD CO 8-K Report (Apr 30, 2008)

Filed April 30, 2008For Securities:CRH

Summary

CRH plc, a global diversified building materials group, filed a Form 6-K to report a transaction involving its own shares. On April 29, 2008, the company repurchased 100,000 of its ordinary shares through its agent, Davy, at prices ranging from EUR24.26 to EUR24.57 per share. These repurchased shares will be held in treasury by CRH plc. This share repurchase indicates management's confidence in the company's valuation and signals a return of capital to shareholders. The treasury shares will not be included in the calculation of earnings per share (EPS) and can be used for future strategic purposes such as employee stock options or acquisitions. Following this transaction, CRH plc now holds 10,273,961 ordinary shares in treasury, with 536,953,233 ordinary shares outstanding.

Key Highlights

  • 1CRH plc repurchased 100,000 ordinary shares on April 29, 2008.
  • 2The share repurchase was executed by Davy on behalf of CRH plc.
  • 3The purchase price per share ranged from EUR24.26 to EUR24.57.
  • 4Repurchased shares will be held as Treasury Shares.
  • 5Following the transaction, CRH plc holds 10,273,961 ordinary shares in treasury.
  • 6The total number of ordinary shares in issue (excluding treasury shares) is 536,953,233.

Frequently Asked Questions

Holding shares in treasury means CRH plc has repurchased its own stock and can hold it for various purposes. These shares are not counted as outstanding when calculating earnings per share (EPS), which can make EPS appear higher. They can also be used for future share-based compensation plans, acquisitions, or other corporate transactions.

Companies typically buy back shares for several reasons: to return excess cash to shareholders, to increase earnings per share (EPS), to signal management's confidence in the company's undervalued stock, or to offset dilution from employee stock options.

The total value of the shares repurchased can be estimated. With 100,000 shares bought at prices between EUR24.26 and EUR24.57, the total expenditure would be between EUR2,426,000 and EUR2,457,000.