Tesco agrees to sell Homeplus

7 Sep 2015

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

7 September 2015

 

Tesco PLC

("Tesco" or the "Company")

TESCO AGREES TO SELL HOMEPLUS

  • Proposed sale of Homeplus to a group of investors led by MBK Partners and including Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings (Private) Limited (the “Disposal”), following competitive sale process
  • Represents enterprise value of £4,240 million on cash and debt free basis
  • Cash consideration of £4,004 million before tax and other transaction costs
  • Significant reduction of £4,225 million in Tesco group’s total indebtedness from net cash proceeds and associated reduction in capitalised lease and other commitments
  • Completion is expected in calendar Q4 2015, conditional on Tesco shareholder approval and regulatory approvals in the Republic of Korea

 

Dave Lewis, Chief Executive of Tesco, 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.

I would like to thank all of our Homeplus colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of a great business.  I am confident that the agreement we have reached with MBK Partners presents an exciting opportunity for their continued success.”

HSBC Bank plc is acting as Lead Financial Adviser and Barclays Bank PLC, acting through its Investment Bank (“Barclays”), as Financial Adviser and Sponsor to Tesco in relation to the Disposal.

This summary should be read in conjunction with the full text of this announcement.  This announcement is available at http://www.tescoplc.com.  A circular containing details of the Disposal and a notice convening a general meeting of the Company will be sent to Tesco shareholders as soon as is practicable.

View full statement PDF

Read the Shareholder Circular incorporating the Notice of General Meeting

 

Enquiries:

Tesco

Investor Relations- Chris Griffith: +44 (0)1992 644 800

Media- Tom Hoskin: +44 (0)1992 644 645

 

HSBC Bank plc (Lead Financial Adviser)

Charles Packshaw: +44 (0)207 991 8888

Rajeev Sahney: +852 2841 8405

 

Barclays (Financial Adviser and Sponsor)

Alisdair Gayne: +44 (0)207 623 2323
Mark Todd: +44 (0)207 623 2323