Report: Tesco plans India supermarket entry
Cheshunt, England – British supermarket and general merchandise retailer Tesco plc has reportedly applied to the Indian government for permission to buy a 50% stake in the Indian hypermarket chain Trent Hypermarket Ltd. According to Reuters, Tesco wants to open stores in western India and would become the first foreign retailer to open a supermarket in India.
Tesco would initially invest $100 million. India has long forbid foreign companies from holding a decision-making stake in supermarkets there, but loosened restrictions in late 2012. However, there are still strict laws in place requiring local sourcing of at least 30% of all goods, which is one reason Wal-Mart dissolved a partnership with Indian firm Bharti Enterprises in October 2013 and delayed plans to expand its presence in India.
Tesco and Wal-Mart have both had a small presence in India through minority partnerships with local retail chains for several years and have been lobbying the Indian government to make it easier for foreign firms to invest in supermarket businesses there.
Chico’s repurchases 6.7 million shares
Fort Myers, Fla. – Chico’s FAS repurchased approximately 6.7 million shares of its common stock, for approximately $125 million, during the fourth quarter of fiscal 2013, completing all but $55 million of its existing share repurchase authorization. The Chico’s board of directors has cancelled the remainder of its March 2013 share repurchase program and approved a new $300 million share repurchase authorization for the company’s common stock.
"We’re pleased that we will have distributed approximately $283 million in cash to shareholders during fiscal 2013, reflecting meaningful year-to-date share repurchases and the increased December 2013 dividend declaration," said Dave Dyer, CEO of Chico’s FAS. “Since the inception of our share repurchase and dividend programs in 2010, we will have distributed approximately $690 million to our shareholders. Both the new authorization and the recent dividend increase underscore the company’s commitment to returning excess cash to shareholders.”
Sears Holdings elects new board member
Hoffman Estates, Ill. — Cesar L. Alvarez, co-chairman of the international law firm of Greenberg Traurig, LLP, has been elected to membership on the Sears Holdings board of directors.
Alvarez joined Greenberg Traurig in 1973. Prior to his appointment as co-chairman, Alvarez served the firm as its executive chairman for more than three years, and as its CEO 13 years. Prior to becoming CEO in 1997, he practiced securities, corporate and international law for more than 25 years.