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Tesco Compensation Scheme

Important information on the Tesco Compensation Scheme

Important information on the Tesco Compensation Scheme

 

23 August 2017

 

Tesco Compensation Scheme now open and accepting claims

 

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’).

This compensation scheme has now opened and will accept claims until 22 February 2018.

You can submit a claim through the online claims portal which can be found at:

 

www.tesco-scheme-kpmg.co.uk

 

This is the most efficient and quickest way of lodging a claim and will lead to the promptest response. Alternatively, should you require, a written claims pack can be requested by calling our helpline, and this can then be completed and returned to KPMG.

If your broker has been in contact with you and you have agreed to them facilitating the claims process, you should wait for a letter from KPMG providing log in details for the claims portal as this will make the claims process quicker and easier for you. This letter should be with you no later than 30 September 2017.

 

Scheme background

 

Tesco agreed with the Financial Conduct Authority ('FCA') (which is acting under its statutory powers) to establish a compensation scheme to be administered by KPMG. 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 are a net purchaser between 29th August 2014 to 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 lodge 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

 

Generally, you will be required to provide the following documentation with your claim:

1. Identification documents for individuals or authorised signatory list for entities;

2. Bank account statement for the account to which you have requested any payments to be made; and

3. Evidence of the transactions e.g. broker statements and contract notes.

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.

 

You may have been contacted by your broker asking if you wish for them to facilitate the claims process – if so, you shall shortly receive a letter from us providing your log in details to the claims portal. If you lodge a claim without these details, it will supersede your broker facilitated claim. Please note that broker facilitated claims will be dealt with more quickly so it is preferable to wait for this letter. For further information regarding the broker facilitated claim process, please see here.

Please note, we will be writing to all shareholders and bondholders who we identify as potentially having an eligible claim.

 

Further information

 

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

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

Postal

KPMG LLP
PO Box 74451
London
E1W 9PB

 

Claim Pack

Full claim pack (PDF 220 KB)

Individual with shares (PDF 157 KB)

Entity with shares (PDF 156 KB)