8-K

CRH PUBLIC LTD CO 8-K Report (Jul 25, 2008)

Filed July 25, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed an 8-K report detailing its recent share repurchase activity. On July 24, 2008, the company, through UBS Limited, repurchased 67,292 of its ordinary shares at prices ranging from €16.68 to €17.78 per share. These repurchased shares will be held as treasury shares, meaning they are no longer outstanding for voting or dividend purposes but can be reissued. This action indicates the company's ongoing strategy to manage its capital structure and potentially return value to shareholders by reducing the number of outstanding shares. Following this transaction, CRH now holds a total of 13,420,972 ordinary shares in treasury. The number of shares currently in issue, excluding treasury shares, stands at 534,699,464. Investors should note that share repurchases can signal management's confidence in the company's valuation and may lead to an increase in earnings per share (EPS) due to a lower number of outstanding shares, assuming net income remains constant.

Key Highlights

  • 1CRH plc repurchased 67,292 ordinary shares on July 24, 2008.
  • 2The share repurchases were executed by UBS Limited on behalf of CRH.
  • 3The purchase prices per share ranged between €16.68 and €17.78.
  • 4The acquired shares will be held as treasury shares.
  • 5Following the repurchase, CRH holds 13,420,972 ordinary shares in treasury.
  • 6The total number of ordinary shares currently in issue (excluding treasury shares) is 534,699,464.

Frequently Asked Questions

Treasury shares are shares that a company has repurchased from the open market. They are no longer outstanding and do not carry voting rights or qualify for dividends. CRH can hold these shares indefinitely, reissue them for employee stock plans, or cancel them. Holding shares in treasury can be a way for the company to manage its capital efficiently and potentially boost earnings per share.

Companies typically repurchase shares for several reasons, including returning excess cash to shareholders, signaling that management believes the stock is undervalued, offsetting dilution from employee stock options, or optimizing the company's capital structure. In this case, it suggests CRH is actively managing its share count.

The repurchase reduces the number of outstanding shares. Specifically, 67,292 shares have been removed from the public market. With the total held in treasury now at 13,420,972, the effective number of shares available to the public (excluding treasury) is 534,699,464. This reduction can lead to an increase in earnings per share (EPS) if net income remains stable.