8-K

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

Filed May 3, 2011For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed a Form 6-K report on May 2, 2011, detailing the results of its Scrip Dividend Scheme for the 2010 final dividend. The report indicates that a significant portion of its ordinary shareholders, specifically 38.16%, opted to receive new ordinary shares in lieu of cash for their dividend payment. This resulted in the allotment of 6,950,139 ordinary shares of €0.32 each. This scrip dividend alternative is a mechanism that allows the company to retain cash on its balance sheet, which can be beneficial for its financial flexibility and investment opportunities, while providing shareholders with additional equity in the company. The new shares are expected to be admitted to the official lists of the Irish Stock Exchange and the UK Listing Authority, and commence trading on the Irish Stock Exchange and the London Stock Exchange on May 9, 2011.

Key Highlights

  • 138.16% of CRH's Ordinary Shareholders elected to participate in the Scrip Dividend Scheme for the 2010 final dividend.
  • 2This means a substantial minority chose to receive shares instead of cash.
  • 3A total of 6,950,139 new Ordinary Shares (of €0.32 each) have been issued under the scheme.
  • 4The scrip alternative allows CRH to conserve cash.
  • 5Application will be made to list the new shares on the Irish Stock Exchange and the London Stock Exchange.
  • 6Trading of the new shares is expected to commence on May 9, 2011.

Frequently Asked Questions

The Scrip Dividend Scheme allows shareholders to receive new ordinary shares of the company instead of a cash dividend payment. For CRH, this means they can conserve cash, potentially using it for investments or to strengthen their financial position, while shareholders receive additional equity.

CRH issued a total of 6,950,139 new Ordinary Shares of €0.32 each under the terms of the Scrip Dividend Scheme.

Dealing in the new shares is expected to commence on Monday, May 9, 2011, on both the Irish Stock Exchange and the London Stock Exchange.

The fact that 38.16% of shareholders chose the scrip alternative suggests a strong belief among a significant portion of CRH's investor base in the company's future prospects and a willingness to reinvest their dividends into additional equity. It also highlights the company's successful implementation of a cash-conservation strategy through its dividend policy.