8-K

CRH PUBLIC LTD CO 8-K Report (May 5, 2017)

Filed May 5, 2017For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K report on May 4, 2017, providing an update on its 2016 Final Dividend. The company announced that a significant portion of its ordinary shareholders, specifically 33.65%, opted to receive new ordinary shares instead of cash for their final dividend payment, which was scheduled to be paid on May 5, 2017. This decision by shareholders to participate in the Scrip Dividend Scheme will result in the allotment of 433,046 new ordinary shares. The company has already applied for these new shares to be admitted to the official lists of the UK Listing Authority and the Irish Stock Exchange, as well as for trading on the London Stock Exchange and the Irish Stock Exchange's Main Securities Market. Trading of these new shares was expected to commence on May 5, 2017.

Key Highlights

  • 1CRH announced shareholder election results for the 2016 Final Dividend Scrip Alternative.
  • 233.65% of Ordinary Shareholders elected to receive shares in lieu of cash.
  • 3A total of 433,046 new Ordinary Shares will be allotted under the Scrip Dividend Scheme.
  • 4The final dividend payment date was May 5, 2017.
  • 5Applications have been made for the new shares to be listed on the UK Listing Authority and Irish Stock Exchange's Official Lists.
  • 6The new shares are expected to commence trading on the London Stock Exchange and Irish Stock Exchange's Main Securities Market on May 5, 2017.

Frequently Asked Questions

The Scrip Dividend Scheme allows shareholders to choose between receiving their dividend payment in cash or as additional shares of the company. In this instance, a substantial percentage of CRH shareholders chose to receive new shares, indicating a potential belief in the company's future growth or a preference for reinvesting capital directly into the stock.

This means that fewer cash outflows will be required for the 2016 final dividend. It also leads to an increase in the total number of outstanding ordinary shares by 433,046, which could dilute existing shareholders' ownership percentages slightly if they did not also participate in the scrip offer. The company has also incurred administrative costs related to the share allotment and listing.

The filing states that dealing in the new shares was expected to commence on Friday, May 5, 2017, which was the same day the dividend was to be paid.

This specific filing is administrative in nature, detailing shareholder elections for dividend payment. It does not directly provide insights into CRH's financial performance or strategic shifts. However, a high uptake in a scrip dividend can sometimes suggest shareholder confidence or be driven by tax efficiencies for certain investors.