8-K

CRH PUBLIC LTD CO 8-K Report (Aug 11, 2008)

Filed August 11, 2008For Securities:CRH

Summary

CRH plc filed an 8-K report on August 11, 2008, detailing a share repurchase transaction executed on August 8, 2008. On behalf of the company, Davy purchased 27,300 ordinary shares at prices ranging from €16.62 to €17.15. These repurchased shares are designated to be held as treasury shares, meaning they are still considered outstanding for certain purposes but are not eligible for voting or dividends and are not counted in earnings per share calculations. This action indicates CRH's intention to manage its capital structure and potentially return value to shareholders through share buybacks. Following this transaction, CRH plc now holds 14,131,545 ordinary shares in treasury. The total number of ordinary shares outstanding, excluding these treasury shares, stands at 533,988,891. Investors should note that share repurchases can signal management's confidence in the company's valuation and its ability to generate cash. The report also confirms CRH's foreign issuer status and its filing of annual reports on Form 20-F.

Key Highlights

  • 1CRH plc executed a share repurchase on August 8, 2008.
  • 227,300 ordinary shares were purchased by Davy on behalf of CRH.
  • 3The repurchase price per share ranged between €16.62 and €17.15.
  • 4The acquired shares will be held as treasury shares.
  • 5CRH now holds 14,131,545 shares in treasury.
  • 6The number of outstanding shares (excluding treasury shares) is 533,988,891.

Frequently Asked Questions

Treasury shares are shares that a company has repurchased from the open market. While they are still issued, they are not outstanding for purposes such as voting rights or dividend distributions. Holding shares in treasury allows a company flexibility in managing its capital, such as for employee stock option plans or future acquisitions, without immediately impacting the number of shares voted on by the public or the earnings per share calculation.

Companies typically repurchase shares when they believe their stock is undervalued, or as a way to return capital to shareholders. It can also be a strategy to increase earnings per share (EPS) by reducing the number of outstanding shares. This buyback might signal management's confidence in the company's financial health and future prospects.

The repurchase reduces the number of shares that are not held in treasury. While the total number of issued shares might remain the same, the number of shares available for public trading and voting purposes decreases. The filing specifies that CRH holds 14,131,545 shares in treasury, with 533,988,891 shares outstanding (excluding treasury shares).