Tesco To Buy Back Up To £700 Million In Debt
UK retailer Tesco is set to buy back as much as £700 million of its debt, as part of a plan to improve its investment status, according to the Financial Times.
The supermarket giant launched a tender offer this week, which expires on October 24, with a settlement expected before the end of the month.
The company's statement said that, 'the offers are being made in the context of Tesco's continuing efforts to strengthen the balance sheet and are aimed at efficiently using surplus liquidity to reduce gross debt'.
Earlier this month, Tesco posted a 0.7% increase in group sales in the first half of its finical year, representing the group's seventh consecutive quarter of growth.
Additionally, the retailer announced that it was resuming its dividend for the first time in three years. CEO Dave Lewis said that this measure "reflects our confidence that we can build on our strong performance to date and in doing so, create long-term, sustainable value for all of our stakeholders.”
The latest Kantar Worldpanel figures, released today, reveal that Tesco is still the top grocer in the UK, with a 27.9% market share.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.