SUPERMARKET giant Tesco could net around £7bn from the sale of its businesses in Malaysia and Thailand, according to analyst estimates.
The retailer announced on Sunday that it will launch a strategic review of options for the two Asian businesses, including a potential sale, after being approached by interested parties.
Investors welcomed reports that the company is mulling a sale, as Tesco's share price closed up 4.7 per cent to 243.1p yesterday.
In its interim results published in October, the grocer said its Thailand and Malaysia operations reported combined sales of £2.6bn, and operating profit of £171m.
Orsen Karnburisudthi, manager of Aberdeen New Thai Investment Trust, which has invested in Tesco's Lotus Retail Growth arm, said Tesco Thailand is "a trophy asset".
He added: "The strength of the franchise and long-term outlook for the economy means it will attract interest from both local conglomerates and from overseas."
(c) 2019 City A.M., source Newspaper