By P.R. Venkatand Rick Carew
U.K. retailer Tesco PLC is considering a sale of its South Korea
retail operations, potentially raising up to $7 billion dollars to
fund its turnaround efforts, according to people familiar with the
situation.
Tesco has hired HSBC Holdings PLC to manage a process to sell
the retail operation, which is expected to receive interest from
private-equity firms, these people said. A sale would jettison a
big chunk of Tesco's global operations after a series of blunders
at the U.K. retail chain including an accounting scandal, massive
write-downs, and upheaval in its management ranks.
It could be a considerable deal for private-equity firms in
Asia, as South Korea's banks have shown a willingness in the past
to write big checks to finance acquisitions of strong
cash-flow-generating businesses like retailers.
Bankers and investors have kept a close watch on Tesco's Asia
operations, which are substantial in markets including South Korea,
Thailand, and to a lesser extent Malaysia. Tesco vies with
Carrefour SA of France for the position of world's second-largest
retailer by revenue behind Wal-Mart Stores Inc.
Write to P.R. Venkat at venkat.pr@wsj.com and Rick Carew at
rick.carew@wsj.com
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