Summary
CRH Public Limited Company (CRH) filed a Form 6-K on August 6, 2008, to report on a recent share repurchase program. On August 5, 2008, the company, through its agent Davy, purchased 80,300 ordinary shares at prices ranging from €16.26 to €17.00 per share. These repurchased shares are designated to be held as treasury shares. This transaction slightly increases CRH's treasury share holdings to 13,993,820 shares. The total number of ordinary shares outstanding, excluding treasury shares, is now 534,126,616. This disclosure is important for investors as it indicates the company's ongoing strategy regarding capital allocation and potentially signals management's confidence in the company's valuation.
Key Highlights
- 1CRH plc repurchased 80,300 ordinary shares on August 5, 2008.
- 2The share repurchases were executed by Davy on behalf of CRH plc.
- 3The purchase price per share ranged between €16.26 and €17.00.
- 4The acquired shares will be held as treasury shares.
- 5Following the transaction, CRH holds 13,993,820 ordinary shares in treasury.
- 6The number of outstanding ordinary shares (excluding treasury shares) is 534,126,616.
Frequently Asked Questions
Treasury shares are shares that a company has repurchased from the open market but has not retired. They can be used for various purposes, such as stock option plans for employees, future acquisitions, or to reduce the number of outstanding shares in the open market, potentially boosting earnings per share.
Companies typically repurchase shares when they believe their stock is undervalued, as a way to return capital to shareholders, or to offset dilution from stock-based compensation. This action can also signal management's confidence in the company's future prospects.
The total number of shares in issue remains the same, but the number of treasury shares increases. The number of shares outstanding that are available to the public and used for calculating metrics like earnings per share decreases slightly because these repurchased shares are no longer considered outstanding in that context. The filing states that after this transaction, CRH has 534,126,616 ordinary shares in issue, excluding treasury shares.