Tesco considering US$9.5B sale of Asian business
Tesco is considering selling its profitable Asian business for as much a £7.2bn (US$9.5bn) in a move that would mark a significant retreat for the UK’s largest retailer.
The company said it has received “inbound interest” for its Lotus brand which operates more than 2,000 stores employing 60,000 people in Thailand and Malaysia, The Independent reported.
Tesco's Asia business contributed 13% to the group's global profits last year and would be considered a “trophy asset” by a number of major investors, said Clive Black, an analyst at Shore Capital.
The supermarket chain reportedly said it was reviewing the situation but “no decisions concerning the future of Tesco Thailand or Malaysia have been taken”.
Shares in Tesco jumped more than 4% t in early trading on Monday after the City reacted positively to the news.
An exit from Asia would mean leaving one of the few international markets where Tesco has experienced sustained success.
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