Summary
CRH Public Limited Company (CRH) filed a Form 6-K with the SEC on July 9, 2020, reporting a transaction involving its own shares. The company re-issued treasury shares to participants in its employee share schemes on July 8, 2020. A total of 9,658 Ordinary Shares were transferred at specified prices in Euros and Pounds Sterling, reflecting different tranches of the transaction. This re-issuance impacts CRH's treasury share balance and the total number of ordinary shares outstanding. Following these transfers, CRH now holds 14,718,165 shares in treasury, and the number of ordinary shares in issue, excluding treasury shares, stands at 784,922,173. Investors should note this activity as it relates to share dilution and employee compensation.
Key Highlights
- 1CRH plc re-issued 9,658 Ordinary Shares from treasury to participants in its employee share schemes.
- 2The re-issuance occurred on July 8, 2020.
- 3Shares were transferred at prices of €16.19, £15.54, and £24.51 per Ordinary Share.
- 4CRH's treasury share balance is now 14,718,165 shares.
- 5The total number of ordinary shares outstanding (excluding treasury shares) is 784,922,173.
Frequently Asked Questions
Re-issuing treasury shares typically relates to employee compensation plans, such as stock options or awards. For investors, it means these shares are being put back into circulation, which can impact the total number of outstanding shares and potentially dilute existing shareholders' ownership, though this is often a planned and accounted-for activity.
This transaction reduces the number of shares held in treasury by 9,658 and increases the number of shares in issue by the same amount. The net effect is a slight increase in the total number of shares outstanding, as these shares are no longer held by the company but are in the hands of employees.
The different prices likely reflect the terms of the specific employee share schemes involved. For instance, different schemes may have different strike prices for options, or the conversion rates for awards might have resulted in these varied prices denominated in different currencies based on the share's value at different points in time or under different conditions.
Treasury shares are shares that a company has repurchased from the open market or previously issued shares that are held by the company itself. They do not carry voting rights and do not receive dividends. Companies hold treasury shares for various purposes, including employee stock option plans, potential acquisitions, or to offset share dilution from other programs.