8-K

CRH PUBLIC LTD CO 8-K Report (Oct 20, 2010)

Filed October 20, 2010For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on October 20, 2010, to announce details regarding its 2010 interim dividend. The key information for investors is the outcome of the company's Scrip Dividend Scheme. A significant portion of shareholders, 35.65%, opted to receive new ordinary shares in CRH instead of a cash payment for their interim dividend. This decision will result in the allotment of 714,402 new ordinary shares. The company has applied for these new shares to be listed on the Irish Stock Exchange and the London Stock Exchange, with trading expected to commence on October 29, 2010. This scrip dividend alternative can have implications for share dilution and cash flow management for the company.

Key Highlights

  • 135.65% of CRH Ordinary Shareholders elected to receive shares instead of cash for the 2010 interim dividend.
  • 2A total of 714,402 new ordinary shares of €0.32 each will be allotted.
  • 3The new shares are being issued under the company's Scrip Dividend Scheme.
  • 4Application will be made for admission of the new shares to the Official Lists of the Irish Stock Exchange and the UK Listing Authority.
  • 5Trading of the new shares is expected to commence on the Irish Stock Exchange and the London Stock Exchange on October 29, 2010.
  • 6The interim dividend is scheduled to be paid on October 29, 2010.

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. This can be advantageous for both the company (conserving cash) and shareholders (increasing their stake).

The election by a substantial percentage of shareholders to receive shares means CRH will issue new shares, leading to a slight dilution of existing shareholders' ownership percentage. However, it also means the company conserves cash that would have otherwise been paid out as dividends.

Dealing in the newly allotted ordinary shares is expected to commence on Friday, October 29, 2010, on both the Irish Stock Exchange and the London Stock Exchange.

The new ordinary shares being allotted have a nominal value of €0.32 each.