Buy shares at the Option Price of £1.88 per share and hold them electronically in the Tesco Share Account, which is provided by Equiniti Financial Services Limited. You can then choose to sell these later. If the share price is higher than the Option Price when you sell them, you’ll make a profit.

By keeping your shares in the Tesco Share Account (TSA):

• You benefit from buying shares at the Option Price of £1.88
• You become a Tesco Shareholder, or increase the number of Tesco shares you have
• Any dividends you receive will be reinvested in the Tesco Dividend Reinvestment Plan (DRIP), unless you revoke the DRIP election and provide separate instructions to receive cash dividends direct to your bank account*
• You can view and sell your shares online, and have the proceeds sent direct to your bank account

The Tesco Share Account allows you to hold and manage your shares electronically with no risk of losing share certificates. It also offers access to preferential Equiniti Financial Services Limited share dealing rates.

*The default dividend choice for the TSA is to reinvest cash dividends into the DRIP and any additional shares purchased will be held in accordance with the TSA Terms and Conditions.

In order to receive dividends in cash you must revoke your DRIP election and provide valid bank account details by the dividend record date, otherwise your cash dividends will not be issued to you and you may be charged a fee for their release.

Buy shares at the Option Price of £1.88 per share and sell some or all of them through the Equiniti Financial Services Limited Share Sale Service. If the share price is higher than the Option Price when you sell them, you may make a profit.

By selling your shares:

• You might make a profit, if the Tesco share price is higher than the Option Price when you sell your shares
• You’ll receive the cash from the sale, minus any charges into the same bank account that you receive your pay
• If you decide to sell some of your shares and keep the rest, the remaining shares will be held in the Tesco Share Account which will be opened for you if you don’t already have one

Your shares will normally be sold on the dates shown in the following table. You won’t have any control over the sale price, which will be dependent on the Tesco Share Price on the day they’re sold.

*Unless the Thursday is a public holiday in England and Wales in which case shares will be sold the next UK working day

You won’t have any control over the share price: the sale price will be the price achievable when the trade is placed in the market.

Remember, share prices can go down as well as up

You may make money if the Tesco share price is higher than the discounted Option Price of £1.88 when the shares are sold, subject to dealing charges.

Charges will apply when you sell your shares and are applied automatically when your shares are sold. Equiniti Financial Services Limited (‘EFSL’) will charge 0.5% commission, minimum £15.

The money from your sale, minus the EFSL dealing fee, will be paid directly to the bank account where you receive your pay. Once the trade has completed it may take up to 5 working days for the money to reach your bank account.

The sell choice is only available for the first six months from the normal maturity date and your scheme must be exercised by 12 September 2024. The last date you can submit an instruction to sell is 31 August 2024.

IMPORTANT: Before selecting the sell choice, please make sure you have read and understood the Paying tax section as you may be liable to paying Capital Gains Tax (CGT) if you exceed the CGT annual allowance.

If you decide to sell some of your shares and keep the rest, the remainder will be held in the Tesco Share Account, in your name; an account will be opened for you, if you don't already have one.

Buy shares at the Option Price of £1.88 per share and transfer them into an EQi Flexible Stocks & Shares ISA (‘EQi ISA’), subject to the ISA allowance limit. If you later decide to sell them and the share price is above the Option Price, you’ll make a profit.

The benefits of holding shares in the EQi ISA include:

• You benefit from buying shares at the Option Price of £1.88
• You won’t pay any income tax on any dividends you receive
• There is no charge for transferring shares into an EQi ISA
• If you move your shares into the ISA within 90 days of them being made available to you, you won’t pay any Capital Gains tax when they’re sold from the ISA.

Your shares will be valued and then transferred to the EQi Flexible Stock and ISA, normally on the following dates.

*Unless the Thursday is a public holiday in England and Wales in which case shares will be transferred the next UK working day.

The ISA choice can only be selected online on the Shares Portal you’re not able to select ISA on SMS or App methods. It’s only available for the first six months from normal maturity date (1 March 2024). The last date you can submit an instruction to transfer shares to an EQi ISA is 31 August 2024.

The ISA allowance for the current tax year 2023/24 is £20,000 (minus any contributions made into a cash ISA and/or other qualifying types of ISA). The EQi ISA is flexible, meaning you can withdraw money, and pay it back in the same tax year, without it counting against your annual £20,000 allowance.

Any shares that go over the ISA limit will be transferred to the Tesco Share Account in line with the Tesco Share Account Terms and Conditions. ISA Custody fee will apply.

Do you have an existing Stocks and Shares ISA?

If you decide to transfer shares into an EQi ISA and you have an existing Stocks and Shares ISA with another provider, you can ask to consolidate your shares in one place, under one ISA provider.

For more information on the EQi Flexible Stocks & Shares ISA, including charges, please see the dedicated EQi ISA page.

By taking your savings back:

• You wont benefit from buying shares at the discounted option price of £1.88
• Your savings will be returned to you by BACS to the same bank account you receive your pay
• If you change your mind and the Tesco Share Price is above the discounted Option Price of £1.88, you can still choose to buy shares at £1.88 before the 'Last date to buy shares at the discounted Option Price' shown on your statement
• To request a repayment of your savings you'll have to call the Shares helpline as you can't do this through any other channel