8-K

CRH PUBLIC LTD CO 8-K Report (May 3, 2013)

Filed May 3, 2013For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K report on May 3, 2013, disclosing details about its 2012 final dividend. A significant portion of ordinary shareholders, specifically 36.87%, opted to receive new ordinary shares in lieu of cash payment for this dividend through the company's Scrip Dividend Scheme. This resulted in the allotment of 2,011,165 new ordinary shares of €0.32 each. Investors are informed that these newly issued shares will be admitted for trading on the London Stock Exchange and the Irish Stock Exchange, with dealings expected to commence on May 13, 2013. This scrip dividend alternative allows the company to retain cash, which can be beneficial for its financial flexibility and growth initiatives, while offering shareholders an opportunity to increase their stake in the company without immediate cash outlay.

Key Highlights

  • 1CRH plc announced the outcome of its 2012 final dividend, with a scrip dividend alternative offered to shareholders.
  • 236.87% of ordinary shareholders elected to receive shares instead of cash for the 2012 final dividend.
  • 3A total of 2,011,165 new ordinary shares, each with a nominal value of €0.32, were allotted under the Scrip Dividend Scheme.
  • 4The new ordinary shares will be admitted to the Official Lists of the UK Listing Authority and the Irish Stock Exchange.
  • 5Trading of the new shares is expected to commence on the London Stock Exchange and the Irish Stock Exchange on May 13, 2013.
  • 6This scrip dividend mechanism allows CRH to conserve cash.

Frequently Asked Questions

A scrip dividend is an option offered to shareholders where they can choose to receive new shares in the company instead of a cash dividend. This allows the company to retain cash, potentially for reinvestment, while shareholders can increase their holdings in the company without additional cash outlay.

A total of 2,011,165 new ordinary shares of €0.32 each were allotted to shareholders who elected to receive them in lieu of cash for the 2012 final dividend.

Dealing in the newly allotted ordinary shares is expected to commence on Monday, May 13, 2013, on both the London Stock Exchange and the Irish Stock Exchange.

A high election rate for scrip dividends indicates that a significant portion of shareholders are willing to defer cash income and increase their equity stake. For CRH, it means the company retains more cash, which could be used for capital expenditures, acquisitions, or debt reduction, potentially benefiting long-term shareholder value. For shareholders electing the scrip, it's a way to accumulate more shares, potentially benefiting from future capital appreciation and dividends on a larger share base.