8-K

CRH PUBLIC LTD CO 8-K Report (Apr 29, 2009)

Filed April 29, 2009For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K report on April 29, 2009, detailing the results of its Scrip Dividend Scheme for the 2008 final dividend. A significant portion of ordinary shareholders, 40.32%, opted to receive new shares instead of cash for their dividend payment. This resulted in the allotment of 6,588,110 ordinary shares. These newly issued shares are planned to be listed on the Irish Stock Exchange and the London Stock Exchange, with dealings expected to commence on May 11, 2009. This scrip dividend option allows shareholders to increase their stake in the company without immediate cash outlay and can be a way for companies to conserve cash. Investors should note the potential dilutive effect of new share issuances, although in this case, it reflects shareholder choice.

Key Highlights

  • 1CRH plc is offering a Scrip Dividend Scheme for its 2008 final dividend.
  • 240.32% of ordinary shareholders elected to receive shares in lieu of cash.
  • 3A total of 6,588,110 new ordinary shares have been allotted.
  • 4These new shares are to be admitted to the Official Lists of the Irish Stock Exchange and the UK Listing Authority.
  • 5Application will be made for trading on the Main Market of the Irish Stock Exchange and the London Stock Exchange.
  • 6Trading of the new shares is expected to commence on May 11, 2009.
  • 7The scrip dividend is an alternative to a cash payout for shareholders.

Frequently Asked Questions

A Scrip Dividend Scheme allows shareholders to choose between receiving their dividend payment in cash or as additional shares in the company, often at a slight discount or without transaction costs.

Shareholders might opt for shares if they believe the company's stock will appreciate, if they wish to increase their investment in the company without an immediate cash outlay, or if there are tax advantages in their jurisdiction for receiving stock dividends.

Issuing new shares increases the total number of outstanding shares, which can dilute the ownership percentage of existing shareholders if they do not participate in the scrip dividend. However, it also allows the company to retain cash, which can be beneficial for its financial flexibility.

The new ordinary shares allotted under the 2008 final dividend scrip alternative are expected to commence trading on May 11, 2009.