8-K

CRH PUBLIC LTD CO 8-K Report (Nov 6, 2015)

Filed November 6, 2015For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K on November 5, 2015, to report a transaction involving its own shares. Specifically, the company re-issued 32,818 ordinary shares from its treasury to participants in an employee share scheme. These shares were transferred at prices ranging from €16.58 to €21.5235 per share. This action is part of CRH's ongoing management of its share capital, particularly in relation to employee compensation and incentives. Following this re-issuance, CRH now holds 1,266,768 ordinary shares in treasury. The total number of ordinary shares outstanding, excluding treasury shares, stands at 822,355,716. Investors should note that while this transaction impacts the number of shares outstanding and treasury shares, it does not represent a new issuance of equity to the public market. The primary implication for investors is related to potential dilution effects from employee share schemes and the company's capital structure management.

Key Highlights

  • 1CRH re-issued 32,818 ordinary shares from treasury on November 4, 2015.
  • 2The shares were transferred to participants of an employee share scheme.
  • 3Transaction prices for the re-issued shares ranged from €16.58 to €21.5235 per share.
  • 4Following the transaction, CRH holds 1,266,768 ordinary shares in treasury.
  • 5The number of outstanding ordinary shares (excluding treasury shares) is 822,355,716.
  • 6This filing is made on Form 6-K, indicating it's a report from a foreign private issuer.

Frequently Asked Questions

The main purpose of this filing is to report CRH's re-issuance of treasury shares to employees participating in an employee share scheme. This is a routine disclosure for companies managing their equity and employee compensation plans.

While the re-issuance of shares from treasury to employees does increase the number of outstanding shares for the purpose of employee compensation, it generally does not represent a net dilution of equity value in the same way as a new public offering. The shares were already part of the company's capital structure. However, an increase in outstanding shares can have a dilutive effect on earnings per share (EPS) if not offset by increased profitability.

Treasury shares are shares that a company has repurchased from the open market or, as in this case, shares that were previously issued and then re-acquired, and are held by the company. Companies typically hold treasury shares for various purposes, including to fulfill obligations under employee stock option or share purchase plans, to use in future acquisitions, or to potentially reissue to the market later. In this instance, CRH used them for its employee share scheme.

This transaction reduces the number of shares held in treasury by 32,818. The total number of ordinary shares in issue, excluding treasury shares, increased by 32,818 to 822,355,716. The number of shares held in treasury decreased to 1,266,768.