8-K

CRH PUBLIC LTD CO 8-K Report (Apr 30, 2018)

Filed April 30, 2018For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed a Form 6-K report on April 27, 2018, to announce details regarding its 2017 Final Dividend Scrip Alternative. The filing indicates that a significant portion of ordinary shareholders, specifically 33.72%, opted to receive new ordinary shares instead of cash for their 2017 final dividend. This decision will result in the allotment of 1,841,430 ordinary shares of €0.32 each. This scrip dividend issuance will increase the total number of outstanding shares and will require new shares to be admitted to the Official Lists of the UK Listing Authority and Euronext Dublin, as well as trading on the London Stock Exchange and Euronext Dublin. The new shares are expected to commence trading on May 4, 2018. Investors should note this dilutionary effect on existing shares, though it also signifies shareholder confidence in reinvesting in the company.

Key Highlights

  • 1CRH plc announced that 33.72% of its Ordinary Shareholders elected the Scrip Dividend Scheme for the 2017 Final Dividend.
  • 2A total of 1,841,430 Ordinary Shares of €0.32 each have been allotted as a result of the scrip election.
  • 3The new shares are to be admitted to the Official Lists of the UK Listing Authority and Euronext Dublin.
  • 4Application will be made for trading of the new shares on the London Stock Exchange and Euronext Dublin.
  • 5Dealing in the newly allotted shares is expected to commence on Friday, May 4, 2018.
  • 6The filing was made on April 27, 2018, reporting on events as of April 26, 2018.

Frequently Asked Questions

A Scrip Dividend Scheme allows shareholders to choose between receiving their dividend payment in cash or in the form of additional company shares, typically at a slight discount to the market price. This can be beneficial for both the company (by conserving cash) and shareholders (by increasing their stake in the company).

The election by 33.72% of shareholders to take shares instead of cash will result in the issuance of 1,841,430 new ordinary shares. This increases the total number of outstanding shares, which can dilute the earnings per share and ownership percentage for existing shareholders who did not participate in the scrip dividend.

Dealing in the new ordinary shares allotted under the 2017 Final Dividend Scrip Alternative is expected to commence on Friday, May 4, 2018.

The new shares will be admitted to the Official Lists maintained by the UK Listing Authority and Euronext Dublin, and will trade on the London Stock Exchange's market for listed securities and the Main Securities Market of Euronext Dublin.