Tesco has entered into an agreement with a group of investors over the sale of Homeplus, the supermarket’s stores in the Republic of Korea.
The investors led by MBK Partners and including Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings (Private) Limited (the “Disposal”), following a competitive sale process. The deal represents an enterprise value of £4.34 billion reducing the Tesco group’s indebtedness and the group’s capitalised lease.
Commenting on the agreement Dave Lewis, chief executive of Tesco, said: “After a highly competitive process, we are announcing today the proposed sale of Homeplus, our business in the Republic of Korea. This sale realises material value for shareholders and allows us to make significant progress on our strategic priority of protecting and strengthening our balance sheet.”
“I would like to thank all of our Homeplus colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of a great business. I am confident that the agreement we have reached with MBK Partners presents an exciting opportunity for their continued success.”