Summary
CRH Public Limited Company (CRH) filed a Form 6-K on October 29, 2009, to report a transaction involving its own shares. Specifically, the company re-issued treasury shares to participants in its employee share schemes. This action is a routine administrative event for companies with such schemes and is intended to align employee interests with shareholder value.
Key Highlights
- 1CRH re-issued 1,926 Ordinary Shares from its treasury to participants of its employee share schemes.
- 2The re-issuance occurred on October 28, 2009.
- 3The shares were transferred at prices of €16.2215 and £14.1386 per Ordinary Share.
- 4Following this transaction, CRH holds 13,176,526 Ordinary Shares in Treasury.
- 5The total number of Ordinary Shares in issue, excluding treasury shares, is 694,001,914.
- 6The filing confirms CRH's adherence to regulatory reporting requirements for share transactions.
Frequently Asked Questions
This filing is primarily an administrative update concerning CRH's treasury stock. It indicates the re-issuance of shares to employees under share schemes, which is a common practice to incentivize staff. For investors, it's important to note the reduction in treasury shares and the corresponding slight adjustment in the number of shares outstanding, but it does not represent a new issuance of equity or a significant change in the company's financial structure.
The re-issuance reduces the number of shares held in treasury and increases the number of shares outstanding (excluding treasury shares). The total number of shares outstanding, including those in treasury, remains the same. This action dilutes existing shareholders minimally, as the shares are being transferred from existing authorized shares rather than creating new ones. The primary effect is the re-allocation of ownership to employees participating in the share schemes.
Treasury shares are shares that a company has repurchased from the open market or, as in this case, that were not initially issued and are held by the company. These shares are not considered outstanding for voting or dividend purposes and do not impact earnings per share calculations in the same way as outstanding shares. Companies hold treasury shares for various reasons, including employee stock option plans, potential acquisitions, or to offset dilution from share buybacks.