Gifts Today magazine

Tesco calls time on South Korea

Supermarket giant raises £4.2bn from Homeplus sale.

Tesco will raise £4.2bn from the sale of its Homeplus business to a consortium led by MBK Partners as it calls time on its South Korean operation, reports Retail Week.

South Korea-based MBK Partners has agreed to buy Tesco’s operation in conjunction with the Canada Pension Plan Investment Board, the Public Sector Pension Investment Board and Temasek Holdings.

The 900-store Homeplus business is Tesco’s largest business outside the UK and the deal represents Asia’s largest ever private equity deal.

Tesso will raise £4.23bn from the sale from net cash proceeds and associated reduction in capitalised lease and other commitments.

Net cash proceeds after tax and costs are expected to be £3.35bn.

It is understood Tesco boss Dave Lewis was eager to offload the business as soon as possible to shore up the grocer’s balance sheet after the value of the Korean won began to fall against the pound.

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