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Tesco Compensation Scheme

Important information on the Tesco Compensation Scheme

Important information on the Tesco Compensation Scheme

 

23 February 2018

 

The claim submission deadline has now passed and no new claims will be accepted

 

Claims submitted in the Tesco Compensation Scheme before the claim submission deadline on 22 February 2018 will continue to be processed by the Administrators and 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 claims portal to view your claim and take any necessary action by following the link below.

 

www.tesco-scheme-kpmg.co.uk

 

Scheme background

 

As announced on 28 March 2017, Tesco PLC and Tesco Stores Limited (together 'Tesco') have 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').

The Scheme has been set up to compensate those affected by Tesco's trading misstatement of 29th August 2014, which was later corrected on 22nd September 2014.

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

The FCA's Final Notice, which details the terms of the Scheme, as agreed between Tesco and the FCA, is available here (PDF 235 KB).

 

Who will be compensated?

 

You may be eligible for compensation if you claimed before the claims submission deadline and were a net purchaser between 29th August 2014 and 19th September 2014 (both dates inclusive) of either:

Tesco Ordinary Shares

Or

Certain Tesco listed bonds (see Relevant Bonds)

You are a net purchaser if you bought more shares/bonds in the period than you sold.

Note that the Scheme only compensates net purchasers where there is a genuine economic loss – so where the loss was relieved by hedging, it may not be eligible (please refer to the FCA’s Final Notice for further details).

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

 

Release

 

Prior to receiving compensation, the claimant must agree to a Notice of Acceptance and to a Release.

In broad terms, the Release will release the Tesco Group from claims of any kind connected with the publication of Tesco's 29th August 2014 trading statement or the administration of the Scheme. It also releases the Administrator from claims of any kind connected with the administration of the Scheme. It is important that claimants read the terms of the Release (which is set out at Appendix 1 to the FCA’s Final Notice) carefully before signing it and, if in any doubt, claimants should take legal advice as to its effect.

 

Compensation amount

 

The amounts to be paid per net share purchase and per net bond purchase have been determined by the FCA. Where the administrator accepts a claim, each net purchaser of shares shall be entitled to compensation of 24.5p per share purchased. Varying amounts are payable in respect of each relevant bond issue (see Relevant Bonds PDF 79 KB).

Interest shall also be paid at 1.25% per annum if the net purchaser is deemed an institutional investor under the Scheme, or 4% per annum otherwise. Interest will be calculated on a simple basis over the period from 19 September 2014 to 21 December 2017.

 

How to participate

 

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

 

Further information

 

If you require further information please refer to the Scheme FAQs (here) or call our helpline.

 

For further information in relation to claims for share transactions, please see here.

For further information in relation to claims relating to bond transactions, please see here.

If you are/were a Tesco employee and purchased shares through the Tesco BAYE Scheme, please see here.

For further information regarding the broker facilitated claim process, please see here.

Visit the Tesco Compensation Scheme Claims Portal

Key Dates:

Final date to submit a claim: 22 February 2018

 

Summary of Claim Process

Overview of Claim Process (PDF 203 KB)

Standard Claim Process

Broker Facilitated Process

Bondholder Claims Process

BAYE Scheme

 

Frequently Asked Questions

General FAQs (PDF 558 KB)

Broker Facilitated Process - FAQs (PDF 313 KB)

Bondholder Claims Process - FAQs (PDF 238 KB)

 

Useful Documents

Relevant Bonds (PDF 79 KB)

Key Definitions (PDF 41 KB)

FCA Scheme Terms (PDF 235 KB)

Template Release (PDF 182 KB)

 

Contact Us

Helpline

UK Freephone: +44 (0)808 164 6031
US Freephone: 1 833 253 5674
Other: +44 (0)203 554 0555

We are open 9am to 5pm Monday to Friday, excluding public holidays

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PO Box 74451
London
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