Tesco to sell businesses in Thailand and Malaysia in $10.6 billion enterprise value
Topics: TESCO THAILAND MALAYSIA
The Disposal will simplify the Tesco Group, enabling a stronger focus on its retail businesses in the UK and Ireland and in Central Europe.
The Disposal also realises material value for Tesco’s shareholders and allows the Tesco Group to further de-risk the business by reducing indebtedness through a significant pension contribution of £2.5 billion.
The consideration payable to Tesco pursuant to the Disposal represents an enterprise value of $10.6 billion (equivalent to £8.2 billion) on a cash and debt free basis, representing an EV/EBITDA multiple of 12.5x 2 .
Under the terms of the Disposal, net cash proceeds are expected to be $10.3 billion (equivalent to £8.0 billion) before tax and other transaction costs. ■