Tesco Compensation Scheme

The claim submission deadline for the Tesco Compensation Scheme has now passed. As such, no new claims will be accepted by the Administrators.

Claims submitted before the claim submission deadline on 22 February 2018 will continue to be processed by the Administrators, KPMG. The claims portal remains available for these claimants to undertake any actions required.

If you submitted a claim before the claim submission deadline you can logon to the KPMG claims portal to view your claim and take any necessary action.

Background
As announced on 28 March 2017, Tesco PLC agreed with the FCA (under its statutory powers) to establish a compensation scheme for certain shareholders and bondholders to be administered by KPMG.

The Scheme was set up in connection with Tesco’s Trading Statement of 29 August 2014 regarding our profit outlook for 14/15. It was corrected on 22 September 2014.

As a result, we paid compensation to certain purchasers of Tesco shares and bonds in the period from 29 August to 19 September 2014.

The Tesco Scheme compensated:

  • Net cash purchasers of Tesco ordinary shares between 29 August 2014 to 19 September 2014 (both dates inclusive). If someone purchased more shares than they sold during the period 29 August to 19 September 2014, they were a net purchaser.
  • Net purchasers of certain Tesco listed bonds between 29 August 2014 to 19 September 2014, (both dates inclusive) (a list of the relevant bonds can be found here). If someone purchased more bonds than they sold during the period 29 August to 19 September 2014 they were a net purchaser.
  • The Scheme only compensated net purchasers where there was a genuine economic loss – so where the loss was mitigated by hedging it was not eligible.

The amounts to be paid per net share purchase and per net bond purchase were determined by the FCA. Each net purchaser of shares was entitled to compensation of 24.5p per share purchased, plus interest at 1.25% per annum if the net purchaser was an institutional investor or 4% per annum if the net purchaser was a retail investor, in each case with such interest running from 19 September 2014 until approximately 4 months after the opening of the scheme. Varying amounts were payable in respect of each relevant bond issue, again together with interest. The compensation was based on the difference in price of the relevant shares and bonds between market close on Friday 19 September 2014 and market close on Monday 22 September 2014 after Tesco PLC had announced in the morning of Monday 22 September 2014 that it had identified an overstatement of its expected profit. It was further adjusted for other industry-wide effects on the market and was intended to compensate investors who purchased shares and bonds at a time when the price was inflated by Tesco’s Trading Statement of 29 August 2014.

To make a claim you needed to provide evidence showing that you purchased Tesco shares or relevant bonds during the period 29 August 2014 to 19 September 2014. You also needed to provide evidence of any sales of Tesco shares or relevant bonds in this period.

If your purchase of Tesco shares or relevant bonds hedged an exposure under derivatives such as (for example) contracts for differences or spread bets, you also needed to provide evidence of the relevant derivative transactions. Similarly, if your purchase of shares was hedged by derivative transactions during the period 29 August 2014 to 19 September 2014, you needed to provide evidence of them.


To participate in the Scheme, you must have lodged a claim with the Administrator before 22 February 2018.