Tesco share price: Japan’s Aeon eyes supermarket’s Malaysia unit

on Jul 8, 2015
Updated: Oct 21, 2019

Japan’s largest retailer Aeon Co is interested in buying Tesco’s (LON:TSCO) Malaysian unit, valued at about £900 million, Reuters has reported. According to people familiar with the matter, Aeon has informally discussed its interest with corporate advisers. “It’s still in the very early stage,” one of the sources has told Reuters. “It would only come after they [Tesco] are done with South Korea and Dunnhumby.”

Another source has said, however, that Aeon is calling investment banks to discuss advisory roles, but it has not yet made any appointments. “The sale of the South Korean unit will buy Tesco some time, so they could delay any further action until around March next year,” the insider has remarked.
Tesco is currently in the process of selling its South Korean business, Homeplus, and a stake in consumer data arm Dunnhumby, to fund a planned turnaround in its home market. The UK’s largest supermarket chain is seeking fresh capital following a turbulent year, marked by the exposure of a £263 million black hole in its accounts and a record annual loss of £6.4 billion.
When contacted by Reuters, Tesco, which has not formally expressed any intention to sell its Malaysian business, declined to comment on the matter, while an Aeon spokesman said the company was not in negotiations with the British group. A spokesman for Sime Darby Bhd, which owns 30 percent of Tesco’s Malaysian arm, said the Malaysian plantation-to-autos conglomerate would always evaluate opportunities that may enhance shareholder value.
Tesco’s shares have been in demand this morning. By 09:18 BST, the FTSE 100-listed grocer had gained 1.32 percent to 203.30p. So far this year, the stock has gained almost eight percent, recovering from a record slump in December.
As of 09:46 BST, Wednesday, 08 July, Tesco PLC share price is 203.45p.

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