8-K

CRH PUBLIC LTD CO 8-K Report (Dec 18, 2008)

Filed December 18, 2008For Securities:CRH

Summary

CRH plc, a global diversified building materials group, reported a transaction involving the re-issuance of treasury shares on December 17, 2008. The company transferred 107,597 Ordinary Shares to participants in its employee share schemes. These shares were re-issued at prices ranging between €10.63 and €18.28, and between £10.9945 and £15.68 per share, reflecting the prevailing market prices at the time. Following this transaction, CRH plc's total treasury shareholding stands at 16,218,983 Ordinary Shares. The number of outstanding ordinary shares, excluding treasury shares, is now 532,283,395. This re-issuance is a standard practice for companies to fulfill obligations under employee incentive plans and does not represent a significant change in the company's capital structure or operational strategy, though it does impact the number of shares held by the public.

Key Highlights

  • 1CRH plc re-issued 107,597 Ordinary Shares from its treasury.
  • 2The shares were transferred to participants of the company's employee share schemes.
  • 3The re-issuance prices ranged from €10.63 to €18.28 per share and £10.9945 to £15.68 per share.
  • 4Post-transaction, CRH holds 16,218,983 Ordinary Shares in treasury.
  • 5The number of outstanding Ordinary Shares (excluding treasury shares) is 532,283,395.
  • 6The filing is made under Form 6-K, indicating a report of foreign issuer.

Frequently Asked Questions

Companies typically re-issue treasury shares to fulfill obligations under employee stock option plans, employee share purchase plans, or other equity-based compensation programs. It allows them to grant shares to employees without issuing new shares, which can dilute existing shareholders' ownership.

This transaction reduces the number of shares held in treasury and increases the number of shares outstanding (excluding treasury shares). The total number of issued shares remains the same, but the number available for trading by the public increases by 107,597 shares, while the treasury stock decreases by the same amount. The net effect on shares outstanding available to the public is positive.

The dual pricing in Euros and Pounds Sterling reflects that CRH plc is a multinational company with share dealings likely occurring in different currency markets. The specific prices for each currency are determined by the exchange rates and market conditions relevant to where the transactions took place or where the shares are listed and traded.

No, this transaction is a routine administrative action related to employee share schemes. Re-issuing treasury shares is a common practice and does not, in itself, signify financial distress or a strategic shift. The company's overall financial health would be assessed through its periodic financial statements and other disclosures.