8-K

CRH PUBLIC LTD CO 8-K Report (Jul 17, 2008)

Filed July 17, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on July 17, 2008, reporting a transaction in its own shares. On July 16, 2008, the company repurchased 152,028 ordinary shares through UBS Limited at prices ranging from €14.058 to €14.87 per share. These shares will be held as treasury shares, which are essentially shares that the company has reacquired but are not considered outstanding for calculating earnings per share or voting rights. Following this buyback, CRH now holds 13,387,413 ordinary shares in treasury. The total number of outstanding shares, excluding treasury shares, is 534,733,023. This activity indicates a potential strategy by CRH to return value to shareholders or to manage its share capital, particularly in the context of prevailing market conditions. Investors should monitor future filings for further share repurchase programs or changes in capital structure.

Key Highlights

  • 1CRH plc conducted a share repurchase program on July 16, 2008.
  • 2152,028 ordinary shares were purchased by UBS Limited on behalf of CRH.
  • 3The repurchase price per share ranged from €14.058 to €14.87.
  • 4The repurchased shares will be held as treasury shares.
  • 5Following the transaction, CRH holds 13,387,413 ordinary shares in treasury.
  • 6The number of outstanding ordinary shares (excluding treasury shares) is 534,733,023.

Frequently Asked Questions

Share repurchases, or buybacks, can be a signal that management believes the company's stock is undervalued. It also reduces the number of outstanding shares, which can potentially increase earnings per share (EPS) and return capital to shareholders. The shares purchased are held as treasury shares, meaning they are not outstanding and do not carry voting rights or receive dividends.

Treasury shares are shares that a company has bought back from the open market but has not yet retired. They are not considered outstanding shares and therefore do not affect the company's earnings per share or voting power. Companies often hold treasury shares for future use, such as employee stock options or acquisitions, or to manage their share capital.

The filing states the number of shares and the price range, but not the exact total cost. To calculate an estimated total cost, one would multiply the number of shares (152,028) by the average price within the given range of €14.058 to €14.87. A precise calculation would require knowing the exact price for each of the 152,028 shares purchased.

This repurchase reduces the number of outstanding shares. Before this transaction, the outstanding share count was 534,733,023 plus the treasury shares held previously. After this transaction, the total issued shares remain the same, but the number of outstanding shares (excluding treasury shares) is now 534,733,023, as 152,028 shares have been added to the treasury balance.