8-K

CRH PUBLIC LTD CO 8-K Report (Sep 12, 2008)

Filed September 12, 2008For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on September 12, 2008, reporting on a transaction in its own shares that occurred on September 11, 2008. The company, through its agent UBS Limited, repurchased 90,453 ordinary shares at prices ranging from €18.438 to €18.95 per share. These acquired shares are designated to be held as Treasury Shares. This repurchase activity is a notable event for investors as it signals the company's intention to manage its share capital. The filing updates the market on the total number of shares held in treasury, which now stands at 15,285,290. The number of outstanding shares, excluding those in treasury, is reported as 532,835,146, providing a clear picture of CRH's current share structure and capital management strategy in response to market conditions.

Key Highlights

  • 1CRH plc repurchased 90,453 ordinary shares on September 11, 2008.
  • 2The repurchases were executed by UBS Limited on behalf of CRH plc.
  • 3The purchase price per share ranged from €18.438 to €18.95.
  • 4The acquired shares will be held as Treasury Shares.
  • 5Following the transaction, CRH plc holds 15,285,290 ordinary shares in treasury.
  • 6The total number of ordinary shares in issue, excluding treasury shares, is 532,835,146.

Frequently Asked Questions

Companies typically repurchase their own shares for several reasons, including returning value to shareholders, increasing earnings per share (EPS) by reducing the number of outstanding shares, and potentially signaling management's belief that the stock is undervalued. In this filing, the shares are designated to be held as Treasury Shares, which can be used for employee stock option plans, acquisitions, or future repurchases.

The repurchase reduces the number of shares outstanding, which can lead to a higher Earnings Per Share (EPS) if net income remains constant or increases. It also reduces the company's cash balance by the amount spent on the repurchases. The shares held in treasury are not considered outstanding for voting or dividend purposes.

Treasury shares are shares that a company has repurchased from the open market but has not retired. They do not carry voting rights and do not receive dividends. Companies hold treasury shares for various strategic purposes, such as funding future acquisitions, supporting employee stock purchase plans, or for potential resale in the market. They represent a portion of the company's capital that has been returned to the company rather than to shareholders as dividends.