Tesco PLC (LSE:TSCO) said it will start its share buyback programme as it plans to return £750mln to shareholders by April next year.
An initial £150mln of excess cash will be put back into shareholders' pockets, with HSBC appointed by the retailer to repurchase the shares.
The move comes after Tesco received the go-ahead earlier this year at the supermarket group’s annual general meeting.
Bosses at the FTSE-100 company have been looking to reduce the firm’s share capital with a major buyback programme which was first announced in October last year.
The first tranche of the programme was announced on 18 October 2021 for £500mln in shares.
In April this year, Tesco then committed to buy back a total of £750m worth of shares by April 2023.