Tesco to Raise up to £800 Million in Sale Leasebacks on its Property Portfolio

The Herald - January 14 2004

SHARES in Tesco slipped 4% yesterday after the UK's largest supermarket chain announced a series of new initiatives, including a stock issue, that will raise about Pounds 1.6bn to bolster its war chest for expansion. At the same time, the group reported roaring results in a trading update for the Christmas period, with UK like-for-like sales in the seven weeks to January 3 rising 7.5% - its 16th month of accelerating growth.

The group's shares yesterday dipped 10.5p to close at 247.75p – largely because of investor reaction to the dilutive effect of 315 million new Tesco shares hitting the market. The company, which commands a 27% share of the UK grocery market, also said it expects to raise another £800m through "better managing working capital" and a number of sale-and-leasebacks on its property portfolio.
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