Tesco pulls out of South Korea to boost balance sheet by £4bn
Korea low: Exit for troubled supermarket
Beleaguered supermarket chain Tesco is selling its South Korean stores for £4bn in a bid to improve its core business in Britain which has been hit by falling sales, a £263m accounting scandal and a £6.4bn loss earlier this year.
The proceeds from the sale will go into its UK operation.
Dave Lewis, chief executive of Tesco, said: “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.”
Tesco, whose stores are called Home Plus in South Korea had enjoyed relative success. The stores are being sold to MBK Partners, a 10-year-old South Korean buyout firm, the BBC reports.