Tesco announces the sale of its business in Poland to Salling Group A/S. The transaction, which is subject to antitrust approval, includes the sale of 301 stores together with the associated distribution centres and head office.
Total enterprise value agreed for the transaction is PLN 900m (equivalent to £181m), with total net proceeds expected to be approximately PLN 819m (equivalent to £165m), settled in cash, with completion expected in the current financial year.
Over the past 18 months, Tesco has either sold or agreed to sell 22 stores for net proceeds of c.£200m.
The group will continue to seek to realise value from the remaining assets, which include 19 currently trading stores not covered in this transaction.
Salling Group A/S serves 11 million customers every week across Germany, Poland and Denmark, with 50,000 colleagues and an annual turnover of approximately GBP 7bn.
Tesco Polska generated sales exc. VAT and PFS of £1,368m and an operating loss before exceptional items of £(24)m in the 2019/20 financial year.
All 301 stores included in the transaction will be rebranded during an 18-month transition period.