Tesco, Britain’s largest supermarket group, announced on Monday that it would continue its share buyback program with a second tranche of repurchases worth up to £400 million (approximately $515 million). The previous tranche, which bought back shares worth about £350 million, concluded on Friday.
In April, Tesco unveiled plans to buy back a further £1 billion worth of shares over the next year. This latest announcement is part of that larger program.
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The decision to repurchase shares suggests that Tesco is confident in its future prospects and believes its shares are undervalued. Share buybacks can also be a way for companies to return excess cash to shareholders and increase earnings per share.