It has recently emerged that Tesco has finalised a deal that will see them sell just over fifty per cent of its stake in South East Asia eCommerce marketplace Lazada to China’s Alibaba Group for just under £91 million.
The announcement comes just before Wednesday’s results from the supermarket group, which made a significant £124 million investment in 2013 and will now see them sell an 8.6 per cent stake to Alibaba, which the Group has stated it will use for general working capital purposes.
Following the sale, Tesco will now have an 8.3 per cent holding and values Lazada at roughly $1.5 billion.
It’s also been revealed that Alibaba, through a separate further investment, will become Lazada’s controlling shareholder after the transaction.
Tesco’s share sell-down comes amidst the recent press reports that it may also sell some of its investments in its core market, regardless of the fact that the company’s directors have ruled out the notion of further major asset sales after the sale of the Korean business.
Initial results tomorrow (Wednesday 13th April) from the grocer are forecasted to display revenue of £55.3 billion along with an underlying operating profit of some £932 million.