Tesco sells South Korean business for £4.2 billion
Tesco has agreed to sell its Tesco Homeplus business in South Korea for £4.24 billion to a group of investors led by private equity firm MBK Partners.
The supermarket said the sale will reduce its debt by £4.225 billion.
Completion is expected in the fourth quarter of 2015 and is conditional on Tesco shareholder approval and regulatory approvals in South Korea.
Dave Lewis, Tesco chief executive, 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."
The group of investors includes Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings.
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