Tesco Sells Kipa and Giraffe Businesses
10 June 2016 - 4:58PM
Dow Jones News
By Ian Walker
LONDON--Tesco PLC (TSCO.LN) Friday announced the sales of
Turkish supermarket chain Kipa and the Giraffe U.K. restaurant
chain as part of the grocer's move to focus more on the company's
main U.K. market.
The U.K.'s number one grocer by market share is selling its
95.5% interest in Kipa to Turkish grocer Migros for around 30
million pounds ($43.4 million). The sale is expected to cut Tesco's
debt by around GBP110 million, Tesco said.
Tesco is selling the Giraffe restaurant chain to Harry Ramsden
fish and chip shop and brand owner Boparan Restaurants Holdings for
an undisclosed sum.
Dave Lewis, who became Tesco's CEO in 2014, has moved to cut
costs, shed non-core assets and simplify Tesco's range and store
operations. A former Unilever PLC executive whose background is in
building brands, Mr. Lewis recently unveiled a new range of
lower-priced "Farm" brands in a bid to compete directly with
discounters Lidl and Aldi.
Tesco has already sold 8.6% of its stake in Asian ecommerce
platform Lazada Group SA to Alibaba Group Holding Ltd. for $129
million and announced it was shuttering its health business
Nutricentre.
Tesco bought Giraffe in March 2013 for GBP48.6 million and Kipa
in November 2003 for GBP75 million.
Shares closed Thursday at 157.9 pence. They are currently down
25% over the past 12 months.
-Saabira Chaudhuri contributed to this article.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
June 10, 2016 02:43 ET (06:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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