CRH Continues Share Buyback Program

Rhea-AI Summary

CRH plc completes $0.3 billion share buyback program, repurchasing 4.2 million ordinary shares on NYSE. Total cash returned to shareholders reaches $7.3 billion since May 2018. Barclays Capital Inc. to conduct Buyback for up to $300 million. The purpose is to reduce share capital within regulatory guidelines.

Insights

Financial Analyst

The completion of the share buyback program by CRH plc and the announcement of a new buyback initiative represent a significant allocation of capital towards shareholder returns. This strategy often reflects a management's belief in the company's intrinsic value and a perception that the stock is undervalued. The repurchase of 4.2 million shares and the intention to buy back up to 13 million more indicate a substantial reduction in outstanding shares, which could potentially lead to an increase in earnings per share (EPS) and a higher stock price, assuming demand remains constant.

However, this also suggests that CRH may not have identified investment opportunities within the company or the market that could yield a higher return than the buyback. Investors might question whether this is the most effective use of capital, especially considering the cyclical nature of the building materials industry and the need for continuous investment in innovation and expansion. The long-term impact will largely depend on how these buybacks affect the company's financial flexibility and its ability to capitalize on future growth opportunities.

Market Research Analyst

In the context of the building materials industry, CRH's share buyback program must be analyzed against the backdrop of the current economic climate and sector trends. The construction sector is highly sensitive to economic cycles, with demand for building materials closely tied to the health of the global economy, interest rates and construction activity. A share buyback program of this scale suggests that CRH is generating sufficient cash flow to support such shareholder-friendly actions, which may be interpreted as a positive signal regarding the company's operational efficiency and market position.

It's important to note that the buyback is being executed within specific regulatory parameters, including Rule 10b5-1 and Rule 10b-18, which aim to prevent market manipulation and ensure transparency. The adherence to these rules underscores the importance of regulatory compliance in such corporate actions. The cancellation of the repurchased shares will also simplify the capital structure, potentially making CRH's financials easier to evaluate for investors and analysts.

Legal Expert

The legal framework governing the share buyback, specifically the reference to Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as well as EU Market Abuse Regulation, is crucial in ensuring that CRH's actions are within the bounds of insider trading laws and market abuse regulations. The structured nature of the buyback plan under these rules allows the company to repurchase shares without facing legal repercussions that could arise from trading on nonpublic information.

Moreover, the fact that no repurchases will be made outside of the United States is indicative of the legal complexities and potential regulatory risks associated with cross-border financial transactions. This strategic decision may mitigate legal exposure and simplify compliance with the varied regulatory environments in which CRH operates. The cancellation of shares, a common outcome of buybacks, is subject to corporate and securities laws, which dictate the process and reporting requirements, ensuring that shareholders' interests are protected throughout the transaction.

DUBLIN--(BUSINESS WIRE)-- CRH plc, the leading provider of building materials solutions, is pleased to announce that it has completed the latest phase of its share buyback program, returning a further $0.3 billion of cash to shareholders.

Between December 21, 2023 and February 28, 2024, 4.2 million ordinary shares listed on the New York Stock Exchange were repurchased. This brings total cash returned to shareholders under our ongoing share buyback program to $7.3 billion since its commencement in May 2018.

CRH today also announces that it has entered into an arrangement with Barclays Capital Inc. (“Barclays”) to repurchase ordinary shares listed on the New York Stock Exchange on CRH’s behalf for an aggregate maximum consideration of up to $300 million (the “Buyback”). The Buyback will commence today, February 29, 2024, and will end no later than May 9, 2024.

Barclays will conduct the Buyback on CRH’s behalf and will make trading decisions under the Buyback independently of CRH in accordance with certain pre-set parameters. The maximum number of ordinary shares which may be acquired pursuant to the Buyback is 13,000,000. The purpose of the Buyback is to reduce the share capital of CRH.

The Buyback will be conducted within the parameters prescribed by (i) Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended and (ii) the EU Market Abuse Regulation (596/2014) and Commission Delegated Regulation (EU) 2016/1052 as such legislation forms part of the law in the United Kingdom (“UK”) pursuant to the EU (Withdrawal) Act 2018 (as may be amended and/or supplemented from time to time). No repurchases will be made outside of the United States. The repurchased ordinary shares will be cancelled.

Any decision in relation to any future buyback program will be based on an ongoing assessment of the capital needs of the business and general market conditions.

About CRH

CRH (NYSE: CRH, LSE: CRH) is the leading provider of building materials solutions that build, connect and improve our world. Employing c.78,500 people at c.3,390 operating locations in 29 countries, CRH has market leadership positions in both North America and Europe. As the essential partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions, CRH’s unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment. The company is ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies. A Fortune 500 company, CRH’s shares are listed on the NYSE and LSE.

Registered Office: No 12965. Registered Office: 42 Fitzwilliam Square, Dublin 2, R02 R279, Ireland

Forward-Looking Statements

This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally, but not always, be identified by the use of words such as "will" or similar expressions. These forward-looking statements include all matters that are not historical facts or matters of fact at the date of this document. Forward-looking statements are subject to risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond CRH’s control or precise estimate. Such forward-looking statements include, but are not limited to, expectations related to the structure, timing and volume of the Buyback and manner in which the Buyback will be conducted and expectations related to decisions on any future buyback program. There are important factors that could cause actual outcomes and results to be materially different, including risks and uncertainties relating to CRH described under “Principal Risks and Uncertainties (Risk Factors)” of CRH’s Annual Report and Form 20-F for the year ended December 31, 2022 and CRH’s other filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this document. CRH expressly disclaims any obligation or undertaking to publicly update or revise these forward-looking statements other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228395589/en/

Contact CRH at +353 1 404 1000

Albert Manifold, Chief Executive

Jim Mintern, Chief Financial Officer

Frank Heisterkamp, Director of Capital Markets & ESG

Tom Holmes, Head of Investor Relations

Source: CRH plc

FAQ

How much cash was returned to shareholders in the latest share buyback program by CRH plc?

CRH plc returned $0.3 billion to shareholders in the latest phase of its share buyback program.

How many ordinary shares were repurchased on the New York Stock Exchange between December 21, 2023, and February 28, 2024?

CRH plc repurchased 4.2 million ordinary shares on the New York Stock Exchange during that period.

What is the total cash returned to shareholders under CRH plc's ongoing share buyback program since May 2018?

The total cash returned to shareholders under CRH plc's ongoing share buyback program has reached $7.3 billion since May 2018.

Which financial institution is CRH plc partnering with for the share buyback program?

CRH plc has partnered with Barclays Capital Inc. for the share buyback program.

What is the maximum consideration for the Buyback with Barclays Capital Inc.?

The Buyback with Barclays Capital Inc. has an aggregate maximum consideration of up to $300 million.

When will the Buyback with Barclays Capital Inc. commence and end?

The Buyback with Barclays Capital Inc. will commence on February 29, 2024, and end no later than May 9, 2024.

How many ordinary shares may be acquired pursuant to the Buyback with Barclays Capital Inc.?

The maximum number of ordinary shares which may be acquired pursuant to the Buyback is 13,000,000.

What is the purpose of the Buyback conducted by CRH plc?

The purpose of the Buyback is to reduce the share capital of CRH plc.

Under what regulations will the Buyback be conducted?

The Buyback will be conducted within the parameters prescribed by Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, and the EU Market Abuse Regulation and Commission Delegated Regulation as part of UK law.

Where will no repurchases be made?

No repurchases will be made outside of the United States.