8-K

CRH PUBLIC LTD CO 8-K Report (Mar 3, 2011)

Filed March 3, 2011For Securities:CRH

Summary

This 8-K filing from CRH Public Limited Company (CRH) reports on transactions involving the company's own shares. Specifically, on March 2, 2011, CRH re-issued treasury shares for employee benefit and share schemes. A total of 152,937 ordinary shares were transferred, with a significant portion going to the CRH plc Employee Benefit Trust to satisfy awards under the 2006 Performance Share Plan. These transactions have a minor impact on the total number of outstanding shares, as treasury shares are being re-issued rather than new shares being created. The filing provides clarity on the movement of these shares and updates the company's treasury share balance. Investors should note that this is a common practice for companies to manage employee compensation and incentive programs.

Key Highlights

  • 1CRH re-issued 2,607 Ordinary Shares for employee share schemes at prices ranging from €11.18 to €14.79 and £11.1630.
  • 2CRH transferred 150,330 Ordinary Shares to the Trustees of the CRH plc Employee Benefit Trust at €16.35 per share.
  • 3The transfer to the Employee Benefit Trust was for the purpose of satisfying awards under the CRH 2006 Performance Share Plan.
  • 4Following these transactions, CRH now holds 9,201,532 Ordinary Shares in Treasury.
  • 5The number of Ordinary Shares in issue, excluding Treasury Shares, is 709,307,381.

Frequently Asked Questions

Companies often re-issue treasury shares to fulfill obligations related to employee share schemes, stock options, and performance share plans. This allows them to provide equity-based compensation to employees without diluting existing shareholders by issuing new shares.

This transaction involves the re-issuance of shares that CRH already held in treasury. Therefore, it does not increase the total number of shares outstanding in the market. The number of shares 'in issue' (excluding treasury shares) has been updated to reflect these transfers.

Treasury shares are shares that a company has repurchased from the open market or had returned to the company. They are not included in the calculation of earnings per share or voting rights and can be re-issued or retired by the company.

The prices reflect the market value of CRH's ordinary shares around the transaction date, with slight variations possibly due to currency exchange rates (€ vs. £) and the specific timing or terms of the employee plans. They are generally within a reasonable trading range for the stock at that time and are relevant for accounting and employee compensation purposes.