J Sainsbury PLC (LSE:SBRY) announced on Tuesday that it plans to complete its previously announced £200 million share buyback by the halfway point of its financial year.
The supermarket group said the process starts today and should be completed by 12 September.
Choosing to complete the programme by the half-year stage was not clear at the time that the FTSE 100 group announced the repurchase programme, suggested analyst Clive Black at house broker Shore Capital.
"We see this buyback as a beneficial nudge to Sainsbury’s investment thesis," Black added, noting that the current programme "could yet be augmented by further activity subject to the completion of the disposal of Sainsbury Bank", where management say they expect the deal to also be completed in the first half.
The proceeds of that Bank disposal are set to yield a special dividend of around £250 million, which was determined following shareholder consultation.
"But any proceeds in excess of this level will be allocated to the buyback programme, which may yet see, therefore, tens of millions of pounds of additional repurchase," said Black.