Investing.com -- Tesco PLC announced today it will sell its businesses in the Czech Republic and Slovakia to Ahold Delhaize for a total enterprise value of €1.7 billion, equivalent to £1.5 billion, on a cash and debt free basis.
The British retailer expects to receive net cash proceeds of €1.2 billion, equivalent to £1 billion, before tax and other transaction costs. The sale requires antitrust and other regulatory approvals and is expected to close in the second half of 2027.
Tesco plans to return most of the net cash proceeds to shareholders through an additional share buyback program. The company said the transaction is expected to have a neutral impact on earnings per share and the Group Net Debt/EBITDA ratio after the buyback is completed.
The Czech Republic and Slovakia businesses generated combined sales of £2.9 billion and contributed the majority of the £115 million adjusted operating profit reported for the Central European region during the prior 52-week period.
The transaction includes all stores and offices in both countries, as well as distribution centers in Kralupy, Presov and Beckov. Tesco has operated in the Czech Republic and Slovakia for 30 years.
"For Tesco, the transaction will further simplify the Group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem," said Ken Murphy, chief executive of Tesco in a statement.
Original Article
Tesco to sell Czech and Slovak operations to Ahold Delhaize
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