8-K

CRH PUBLIC LTD CO 8-K Report (Nov 27, 2020)

Filed November 27, 2020For Securities:CRH

Summary

CRH plc filed a Form 6-K on November 26, 2020, to report a transaction involving its own shares. Specifically, on November 25, 2020, the company re-issued 2,976 ordinary shares from its treasury to participants in an employee share scheme at a price of €16.19 per share. This action is part of the company's ongoing management of its share capital, particularly in relation to employee incentive programs. Following this re-issuance, CRH plc's treasury share balance has been adjusted. The company now holds 14,611,038 ordinary shares in treasury. The total number of ordinary shares outstanding, excluding these treasury shares, stands at 785,029,300. Investors should note that this transaction, while a routine administrative event, impacts the share count and can be a point of reference for understanding equity dilution and employee compensation strategies.

Key Highlights

  • 1CRH plc re-issued 2,976 ordinary shares from its treasury on November 25, 2020.
  • 2The shares were transferred to participants in an employee share scheme.
  • 3The re-issue price was €16.19 per ordinary share.
  • 4Following the transaction, CRH plc holds 14,611,038 ordinary shares in treasury.
  • 5The total number of ordinary shares in issue, excluding treasury shares, is 785,029,300.

Frequently Asked Questions

This transaction represents a re-issuance of shares from treasury to employees. It reduces the number of shares held in treasury and slightly increases the number of shares outstanding (though the total number of shares authorized or issued might remain the same, depending on the company's capital structure). For investors, it signifies the fulfillment of obligations under employee share schemes.

Companies hold shares in treasury for various reasons, including to satisfy obligations under employee stock option plans, for future acquisitions, or for share buyback programs. In this case, the shares were re-issued to employees, indicating their use for compensation purposes.

The re-issuance of shares from treasury, especially for employee share schemes, can be considered a form of dilution. However, the impact is typically minimal for a large company like CRH, and these shares were already accounted for in the company's overall capital structure. The key is that the number of shares outstanding has changed, which can slightly affect earnings per share (EPS) calculations.

After the re-issuance of 2,976 shares, CRH plc has 785,029,300 ordinary shares in issue, excluding the 14,611,038 ordinary shares held in treasury.