8-K

CRH PUBLIC LTD CO 8-K Report (Dec 23, 2022)

Filed December 23, 2022For Securities:CRH

Summary

CRH plc announced on December 23, 2022, the cancellation of 22,000,000 ordinary shares that were previously held as treasury shares. This significant cancellation represents approximately 2.84% of CRH's total issued share capital. The primary impact for investors is a reduction in the total number of issued shares, which could potentially increase earnings per share (EPS) if net income remains constant. It also reduces the number of shares held in treasury, which do not carry voting rights. Following this cancellation, CRH's issued share capital has been adjusted, with a new total of 752,140,338 ordinary shares outstanding, of which 7,197,213 are held in treasury. The total number of voting rights for shareholders has been updated to 744,943,125. This figure is crucial for shareholders needing to report changes in their interest in CRH under relevant transparency regulations.

Key Highlights

  • 1CRH plc cancelled 22,000,000 ordinary shares previously held in treasury.
  • 2The cancelled shares represented 2.84% of the company's issued share capital as of December 22, 2022.
  • 3Treasury shares do not carry voting rights.
  • 4The cancellation reduces the total number of outstanding ordinary shares.
  • 5The adjusted issued share capital is now 752,140,338 ordinary shares.
  • 67,197,213 ordinary shares remain held in treasury.
  • 7The total number of voting rights is now 744,943,125, which shareholders should use for transparency notification purposes.

Frequently Asked Questions

The cancellation of treasury shares reduces the total number of outstanding shares. This can be a positive signal for investors as it may lead to an increase in earnings per share (EPS) if the company's net income remains the same. It also consolidates the voting power among the remaining outstanding shares.

While the filing doesn't explicitly state the reason, companies often cancel treasury shares to reduce the number of outstanding shares, which can signal confidence in the company's valuation, improve financial metrics like EPS, or eliminate the administrative costs associated with holding treasury shares.

The cancellation of treasury shares, which do not have voting rights, does not directly affect the voting rights of existing shareholders. However, it reduces the total number of shares outstanding, meaning each remaining share represents a slightly larger percentage of the total voting power.

As of December 22, 2022, the total number of voting rights is 744,943,125. Shareholders must use this figure as the denominator when calculating whether they need to notify CRH plc of any change in their interest in the company's shares, as required by the Irish Transparency Regulations and other relevant rules.