8-K

CRH PUBLIC LTD CO 8-K Report (Jul 9, 2008)

Filed July 9, 2008For Securities:CRH

Summary

CRH plc, a global diversified building materials group, announced a transaction on July 8, 2008, where UBS Limited purchased 160,777 ordinary shares on behalf of the company. These shares were acquired at prices ranging from €15.131 to €16.05 per share and will be held as Treasury Shares. This activity is part of the company's ongoing share repurchase program, signaling a potential return of capital to shareholders or a strategic move to manage its share count. The filing updates the market on CRH's treasury share position. Following this purchase, CRH now holds a total of 12,656,012 ordinary shares in treasury. The number of outstanding shares, excluding treasury shares, stands at 535,464,424. Investors should monitor these treasury share movements as they can impact earnings per share and overall shareholder value.

Key Highlights

  • 1CRH plc repurchased 160,777 ordinary shares on July 8, 2008.
  • 2The shares were purchased by UBS Limited on behalf of CRH.
  • 3Acquisition prices ranged from €15.131 to €16.05 per share.
  • 4The repurchased shares will be held as Treasury Shares.
  • 5Following the transaction, CRH holds 12,656,012 ordinary shares in treasury.
  • 6The total number of shares in issue (excluding treasury shares) is 535,464,424.

Frequently Asked Questions

Companies typically repurchase their shares to reduce the number of outstanding shares, which can increase earnings per share (EPS) and signal that management believes the stock is undervalued. It can also be a way to return capital to shareholders or to offset dilution from employee stock options.

Treasury Shares are shares of a company's own stock that it has reacquired. Holding shares in treasury allows a company flexibility to use them for various purposes such as employee stock plans, future acquisitions, or to reissue them in the market without issuing new shares. They are not included in the calculation of shares outstanding for voting or dividend purposes until they are retired or reissued.

A reduced number of outstanding shares can lead to a higher Earnings Per Share (EPS), which is often viewed positively by investors. It may also indicate management's confidence in the company's future prospects. However, the impact depends on the overall market conditions and the company's financial performance. Investors should consider this alongside CRH's broader financial health and strategic objectives.

The price range indicates the market value of CRH shares during the period of the repurchase. It suggests that CRH executed its buyback strategy within a specific trading band. This information can be used by investors to assess the cost-effectiveness of the buyback and to compare it with the stock's historical and current trading prices.