Tesco offloads Homeplus to MBK partners for £4bn
Tesco is to sell off its Homeplus business in the Republic of Korea to a group of investors led by MBK partners for in excess of £4bn in the latest sale designed to lower the businesses debt.
The £4.24bn transaction will reduce Tesco’s total debt pile by an equivalent amount through a combination of cash proceeds and a reduction in lease payments once tax and transaction costs are factored in.
Tesco chief executive Dave Lewis commented: "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."
The deal is expected to conclude before the end of the year shareholder and regulatory approval.