8-K

CRH PUBLIC LTD CO 8-K Report (Aug 21, 2008)

Filed August 21, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K report on August 21, 2008, detailing transactions involving its own shares. The report specifies that on August 20, 2008, CRH repurchased 97,800 ordinary shares at prices ranging from €16.442 to €17.077 per share. These repurchased shares are to be held as treasury shares, a common practice for companies to manage their outstanding share capital. This action indicates the company's commitment to potentially returning value to shareholders through share buybacks or for other corporate purposes, such as funding employee share schemes. The filing also discloses the transfer of 2,257 ordinary shares to participants in an employee share scheme, with prices ranging from £7.18 to £12.38 per share. Following these transactions, CRH holds a total of 14,695,295 ordinary shares in treasury. The total number of ordinary shares outstanding, excluding treasury shares, is reported as 533,425,141. Investors should note these share repurchase activities as they can impact earnings per share and overall shareholder value.

Key Highlights

  • 1CRH repurchased 97,800 ordinary shares on August 20, 2008.
  • 2The share repurchase price ranged between €16.442 and €17.077 per share.
  • 3Repurchased shares will be held as treasury shares.
  • 4CRH transferred 2,257 ordinary shares to participants of an employee share scheme.
  • 5Share transfer prices for the employee scheme ranged between £7.18 and £12.38 per share.
  • 6Following these transactions, CRH holds 14,695,295 ordinary shares in treasury.
  • 7The number of outstanding ordinary shares (excluding treasury shares) is 533,425,141.

Frequently Asked Questions

Companies typically repurchase shares to reduce the number of outstanding shares, which can increase earnings per share (EPS) and signal management's confidence in the company's value. It can also be used to offset dilution from employee stock options or to hold for future corporate needs, such as acquisitions or employee share schemes.

Treasury shares are shares that a company has bought back from the open market but has not yet cancelled. CRH holds these shares as treasury shares, meaning they are still considered issued but not outstanding for the purposes of calculating voting rights or dividends. This allows CRH flexibility in managing its capital structure, potentially reissuing them for employee stock plans, acquisitions, or other corporate strategies without needing to issue new shares.

The repurchase of 97,800 shares reduces the number of shares outstanding, while the transfer of 2,257 shares to employees also impacts the outstanding share count depending on whether these shares were previously treasury shares or newly issued. The net effect is a reduction in outstanding shares, as indicated by the company holding 14,695,295 shares in treasury and 533,425,141 shares outstanding.