CRH to delist from London Stock Exchange

(Sharecast News) - Building materials group CRH said on Monday that it was planning to delist from the London Stock Exchange. CRH also announced the proposed cancellation of its two classes of preference shares, comprising the 7% preference shares listed on the LSE and the 5% preference shares listed on Euronext Growth Dublin. The shares have a total par value of around €1.2m ($1.4m).

It said the proposed cancellations would be in exchange for a cash payment of an amount equal to 40 times the annual dividend per preference share.

The company had already announced in its results last month that it was undertaking a review of its LSE ordinary share listing and its preference share capital structure.

As part of the review, CRH said it carefully considered, among other factors, the level of trading activity for its ordinary shares on the LSE as well as the additional cost, regulatory and administrative obligations arising from retaining the LSE listings and maintaining the 5% and 7% preference shares.

"Following completion of the review, the board is satisfied that it is in the best interests of CRH and its shareholders to proceed with the LSE delisting and, subject to shareholder approval, the preference share cancellations," it said.

Since September 2023, CRH's primary listing has been on the New York Stock Exchange. Once the LSE delisting takes effect, the company's ordinary shares will be listed solely on the NYSE.

Russ Mould, investment director at AJ Bell, said: "Having already shifted its primary listing to the US, building materials specialist CRH is to now turn its back completely on London. The development, though not seismic, is another sign of London's diminished status in the roster of global markets.

"Companies who switch their main listing to the US often pledge to keep a presence in London, but CRH's actions suggest that is no longer a given."

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