8-K

CRH PUBLIC LTD CO 8-K Report (Sep 20, 2019)

Filed September 20, 2019For Securities:CRH

Summary

CRH plc, a global diversified building materials business, announced on September 19, 2019, a transaction involving its own shares. The company re-issued treasury shares to participants in an employee share scheme on September 18, 2019. This action involved the transfer of 877 Ordinary Shares at varying prices. This disclosure is important for investors as it relates to share capital changes and employee compensation plans. The re-issuance of treasury shares can impact the number of outstanding shares, earnings per share (EPS) calculations, and potentially signaling management's confidence in the company's performance. Investors should note the specific number of shares transferred and the prices at which they were re-issued to understand the immediate financial impact.

Key Highlights

  • 1CRH plc re-issued 877 Ordinary Shares from its treasury to employees under an employee share scheme.
  • 2The share re-issuance occurred on September 18, 2019.
  • 3The shares were transferred at prices of £14.94 and £16.16 per Ordinary Share.
  • 4Following this transaction, CRH plc now holds 48,184,586 Ordinary Shares in Treasury.
  • 5The total number of Ordinary Shares in issue, excluding treasury shares, stands at 795,205,752.

Frequently Asked Questions

Re-issuing treasury shares typically occurs when a company uses them to fulfill obligations under employee stock option plans, employee share purchase plans, or other equity-based compensation. This action can dilute existing shareholders if new shares are issued, but in this case, it involves shares already held by the company, so it affects the number of outstanding shares and treasury shares rather than diluting ownership on a net basis without a corresponding cash inflow for the company. It can also be seen as a way to incentivize employees and align their interests with shareholders.

The transaction reduced CRH's treasury share balance by 877 shares. The number of outstanding shares (excluding treasury shares) remains 795,205,752. The total number of issued shares (including treasury shares) has decreased by 877.

Treasury shares are shares of a company that it has repurchased from the open market or that were not originally issued. These shares are held by the company and can be re-issued later for various purposes, such as stock options, employee compensation, or acquisitions. They do not have voting rights and do not receive dividends.

This specific transaction, the re-issuance of a small number of treasury shares for employee compensation, is a routine operational event and typically does not indicate a significant change in the company's financial health or overall strategy. It's a standard practice for managing employee incentives.