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Tesco has announced that it has entered into an arrangement with Citigroup Global Markets Limited to repurchase a total of £500m shares on behalf of the company.
The supermarket chain claimed that the shares will be bought back in its entirety no later than October 2022.
The grocer had previously said when it published its half-year results on 6 October 2021, that it could “now afford” to start the first tranche of its buyback after a “successful” trading period.
During the six-months ending 28 August 2021, pre-tax profits rocketed 107% to £1.14bn, despite supply chain issues affecting much of the grocery sector.
Revenue also grew by 5.9% to £30.4bn, largely boosted by a “significant” recovery in travel driven by the easing of government restrictions earlier in the year.
Ken Murphy, chief executive, said at the time: “The scale and reach of our store estate and online operations are unmatched in the UK. Our ability to reward loyalty through Clubcard enhances our relationship with customers.
“Today, we are sharing the strategic priorities that will enable us to build on these advantages to stay competitive, accelerate growth and generate between £1.4bn and £1.8bn retail free cash flow per year.”
He added: “These priorities will ensure we do the basics brilliantly, operate as efficiently as possible and grow our business by building unbeatable digital, convenience and loyalty platforms.”
