Tesco consider sale of assets in South Korea
The retailer Tesco PLC is considering the sale of its assets in South Korea, where the company has largest volume outside the UK. With the sale Tesco expect to raise up to 7 billion USD, which will be used to finance efforts to twist in the presentation of the British company. For this purpose, Tesco […]
The retailer Tesco PLC is considering the sale of its assets in South Korea, where the company has largest volume outside the UK. With the sale Tesco expect to raise up to 7 billion USD, which will be used to finance efforts to twist in the presentation of the British company. For this purpose, Tesco has hired HSBC Holdings PLC to manage the process of selling the assets of retail. The sale will result in the separation of a large percentage of foreign assets of Tesco after a series of blunders chain retailers, including accounting scandal, massive write-downs and management problems. The transaction may be of particular importance for private equity firms in Asia, as banks in South Korea have shown willingness to finance acquisitions of businesses, generating strong cash flows.
In April, the largest British retailer posted the biggest annual loss in its 96-year history, after wrote off assets worth 4.7 billion GBP.
The company also has been hit by an accounting scandal and a drop in sales due to brutal price war between supermarkets in the UK. This led to an annual loss before taxes in the amount of 6.38 billion GBP in the year to February 28. Tesco was affected by significant accounting scandal last year after it was found that the company overestimated its profit of 250 million GBP and the shares prices at CFD Trading were seriously hurt. This led to a number of lawsuits from shareholders who are still continuing.
