8-K

CRH PUBLIC LTD CO 8-K Report (May 2, 2018)

Filed May 2, 2018For Securities:CRH

Summary

CRH Public Limited Company (CRH) has announced the commencement of Phase 1 of its share buyback program, as detailed in their Form 6-K filing dated May 2, 2018. This initial phase involves repurchasing up to €350 million of CRH's ordinary shares through arrangements with UBS AG, London Branch. The program is set to begin on May 2, 2018, and will conclude by August 22, 2018. These repurchased shares will be held in treasury, with the intention of either cancellation or re-issue at a later date, ultimately aimed at reducing the company's share capital. Furthermore, CRH has decided to suspend its scrip dividend program in conjunction with this buyback initiative. While the upcoming final 2017 dividend payment on May 4, 2018, will not be affected, future dividend payments will not offer shareholders the option to receive new shares in lieu of cash. The decision to suspend the scrip dividend is part of the broader strategy and capital management for the company, with any future buyback programs to be evaluated based on evolving business needs and market conditions.

Key Highlights

  • 1CRH has initiated Phase 1 of a share buyback program, intending to repurchase up to €350 million in ordinary shares.
  • 2The buyback program is being executed through a non-discretionary agreement with UBS AG, London Branch.
  • 3Phase 1 of the program will commence on May 2, 2018, and will run until August 22, 2018.
  • 4The primary objective of the buyback is to reduce CRH's share capital.
  • 5Repurchased shares will be held in treasury, pending potential cancellation or re-issue.
  • 6CRH has suspended its scrip dividend program, meaning shareholders will not be able to elect to receive new shares for dividends.
  • 7The final 2017 dividend payment scheduled for May 4, 2018, will not be impacted by the scrip dividend suspension.

Frequently Asked Questions

CRH announced an intention to repurchase ordinary shares of up to €1 billion over the next 12 months. Phase 1, which is commencing now, is for a maximum consideration of €350 million.

The primary purpose of the share buyback program is to reduce the share capital of CRH.

No, CRH has approved the suspension of the scrip dividend program in connection with the buyback. Shareholders will no longer have the option to elect to receive additional ordinary shares in lieu of cash dividends, although the final 2017 dividend will not be affected.

Phase 1 of the share buyback program will commence on May 2, 2018, and will end no later than August 22, 2018.