UK supermarket chain Tesco has announced the sale of its Polish business and portfolio consisting of 301 stores together with the associated distribution centres and head office to Denmark’s Salling Group for PLN 900 mln (€202 mln).
The deal is expected to generate total net proceeds of PLN 819 mln, settled in cash, with completion expected in the current financial year. Proceeds from the sale will be used for general corporate purposes, the retailer said in a statement.
‘We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland,’ said Dave Lewis, Chief Executive of Tesco.
‘Today’s announcement allows us to focus in the region on our business in Czechia, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the Group.’
The group also said that it has made good progress in selling its remaining Polish property outside of this transaction. Over the past 18 months, Tesco has either sold or agreed to sell 22 stores for net proceeds of £200 mln.
Buyer Salling Group is 100% owned by the Salling Foundations from Denmark and serves 11 million customers every week across Germany, Poland and Denmark, with 50,000 colleagues and an annual turnover of approximately £7 bn (€7.7 bn).
