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Tesco Leaves China, Selling Joint Venture for $357 Million

UK’s huge retailer Tesco announced the sale of its 20 percent stake in Gain Land with the £275M or $357M of its joint enterprising to Chinese partner, China Resources Holdings.

tesco shares slip slightlyPhoto: Reuters

The joint venture of both companies began in 2014, joining the UK group’s 131 stores in Celestial Empire and with near 3,000 of those of partner’s in China.

So, the 20 percent stake disposal gives Tesco the right to concentrate on its core operations, the Tesco spokesman said on Tuesday, adding that company nears a potential deal for its Thailand and Malaysia businesses, its last remaining enterprises with full ownership in Asia. The proceeds, according to company’s comments would be used for corporate needs, which include the new purposes as well.

According to preliminary data, the deal would be concluded on February, 28.

Tesco securities went down by 0.75 percent at 1102 GMT, being in the green, at about a 0.7 percent increase earlier, 0820 GMT. Year-to-date the company managed to increase its market capitalization by 12.4 percent.

In case Tesco sells its enterprises in Malaysia and Thai, the only remaining foreign operations, besides Ireland would be stores in Slovakia, Hungary, Poland and Czech Republic.

The UK’s pound grew against the U.S. dollar on Tuesday by 0.31 percent, to 1.2963 at 1116 GMT.

Source: Cityam.com


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