Tesco has announced the sale of its South Korean business, Homeplus, for around £4.2bn in an effort to shore up its balance sheet after a turbulent period to trade.
It is believed that the injection of funds will be utilised primarily to reduce debt and revitalise its business in the UK market.
Homeplus is being sold to MBK Partners, a South Korean firm which has been in existence for around 10 years.
The sale will net (after tax and other costs) the troubled supermarket around £3.35bn before the end of the year.
This deal is the first significant disposal since Tesco reported an all time pre tax loss of £6.4bn for the year to February, in contrast to an annual pre-tax profit of £2.26bn the previous year.
It was the biggest loss reported by a UK retailer and one of the largest in the country’s corporate history.
Source: BBC Business News
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