There have been a few pieces of news released in the past month concerning the Tesco (LON: TSCO) (TSCO.L) share price.
The FTSE 100 index (INDEXFTSE: UKX) retailer confirmed on 12 March that the Polish Competition Authority approved the sale of its business in Poland to Salling Group. The deal was originally announced on 18 June 2020, but was being looked into by competition authorities since that date.
The agreement includes 300 stores across Poland, as well as distribution centres and the firm’s head office in Poland. The total enterprise value for the transaction is around £181 million. Over the next 18 months there will be a transition period, during which time the company’s stores in Poland will gradually be converted to Netto.
The deal did not require shareholder approval. Tesco announced that it completed on 16 March. The company’s CEO, Ken Murphy, had this to say about it in the firm’s regulatory release:
“I would like to thank all our colleagues in Poland for their hard work and dedication to our customers over 25 years. As part of a combined business with Salling Group, our stores and colleagues will be well set up for continued success, with opportunities for further growth in Poland. The sale of Tesco Polska allows us to focus on growing our businesses in the UK, Republic of Ireland, Czech Republic, Hungary and Slovakia”.
As well as the news regarding the sale of its Polish operations, Tesco’s regulatory news feed also included a few director deals of its shares in the past month. They included dividend reinvestment programme (DRIP) transactions made by non-executive directors Stewart Gilliland and Mikael Olsson on 1 March. They amounted to total purchases of £23,353 and £24,215 respectively.
Details of other director share deals released by the company in the past month included DRIP transactions by CFO Alan Stewart and CEO Ken Murphy on 1 March. They amounted to shares with a total value of £6,413 and £22,275 respectively. There was also a relatively small purchase transaction made by CFO Alan Stewart on 19 March as part of the company’s share scheme.
Over the past month, the Tesco share price has gained around 3% to trade at its current level of 229p. In the past year it is flat, while the FTSE 100 index has risen by around 23% in the same time period. Over a five-year period, Tesco’s shares are up 20%, while the index is currently 9% higher.
Looking ahead, the retailer is expected to release its preliminary results for the 2021 financial year on 14 April.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.