Summary
CRH Public Limited Company (CRH) announced on October 17, 2008, the withdrawal of its previously announced Scrip Dividend Offer for the 2008 interim dividend. This decision was made due to continuing market volatility which led to a significant decline in CRH's share price, making the scrip offer unattractive compared to the current market value. The company cited that the Articles of Association did not allow for a reset of the scrip offer price. Instead of offering shares at the original price, CRH will now pay the interim dividend of 20.5 cent per Ordinary Share entirely in cash on October 31, 2008. This move is intended to act in the best interests of shareholders by allowing them to receive the full value of their dividend. CRH also indicated its intention to offer a scrip dividend alternative for future dividend payments.
Key Highlights
- 1CRH Public Limited Company (CRH) has withdrawn its 2008 Interim Scrip Dividend Offer.
- 2The withdrawal is attributed to ongoing market volatility and a decline in CRH's share price.
- 3The original scrip offer price was deemed unattractive relative to the current share price.
- 4CRH will now pay the interim dividend of 20.5 cent per Ordinary Share solely in cash.
- 5The cash payment of the interim dividend is scheduled for October 31, 2008.
- 6The company's Articles of Association did not permit resetting the scrip dividend price.
- 7CRH plans to reintroduce a scrip dividend alternative for future dividends.