by Benson Agoha | Business
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| * Tesco is selling its Kipa and Giraffe Businesses. (Credit: Tesco). |
Tesco today confirmed the proposed sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros.
The disposal, which Tesco says is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m. It will also contribute to a reduction of around £110m in total indebtedness, according to official Tesco statement.
In a separate transaction, Tesco also announced its intention to sell the Giraffe restaurant chain to Boparan Restaurants Holdings Limited.
The sale of Giraffe, according to official statement will include 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores.
Tesco today confirmed the proposed sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros. The disposal, which is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m, contributing to a reduction of around £110m in total indebtedness.
In a separate transaction, Tesco also announced its intention to sell the Giraffe restaurant chain to Boparan Restaurants Holdings Limited. The sale of Giraffe includes 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores.
Dave Lewis, Tesco CEO said: On Kipa that: “...it reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market. It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.
The sale agreement recognises the significant improvements in the performance of the business over the last 18 months and I would like to thank Kipa colleagues, suppliers and partners for their service during a period of considerable change.”
On Giraffe, Dave Lewis said Tesco will continue to focus on areas it considers necessary to best serve the needs of their customers.
“As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.", he said.
Continuing, he said that Giraffe is a much loved brand, and that while casual dining remains an important part of the shopping trip for many of Tesco's customers, the high street giant will continue to meet these needs through Tesco's Cafés and other providers.
David Lewis said: "I’d like to thank colleagues from Giraffe for all their hard work in serving our customers and we look forward to seeing it develop in the future.”
The disposal, which Tesco says is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m. It will also contribute to a reduction of around £110m in total indebtedness, according to official Tesco statement.
In a separate transaction, Tesco also announced its intention to sell the Giraffe restaurant chain to Boparan Restaurants Holdings Limited.
The sale of Giraffe, according to official statement will include 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores.
Tesco today confirmed the proposed sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros. The disposal, which is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m, contributing to a reduction of around £110m in total indebtedness.
In a separate transaction, Tesco also announced its intention to sell the Giraffe restaurant chain to Boparan Restaurants Holdings Limited. The sale of Giraffe includes 54 standalone restaurants, of which 12 are franchise sites, and 3 restaurants within Tesco stores.
Dave Lewis, Tesco CEO said: On Kipa that: “...it reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market. It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.
The sale agreement recognises the significant improvements in the performance of the business over the last 18 months and I would like to thank Kipa colleagues, suppliers and partners for their service during a period of considerable change.”
On Giraffe, Dave Lewis said Tesco will continue to focus on areas it considers necessary to best serve the needs of their customers.
“As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.", he said.
Continuing, he said that Giraffe is a much loved brand, and that while casual dining remains an important part of the shopping trip for many of Tesco's customers, the high street giant will continue to meet these needs through Tesco's Cafés and other providers.
David Lewis said: "I’d like to thank colleagues from Giraffe for all their hard work in serving our customers and we look forward to seeing it develop in the future.”
Tesco has spent the last few years restructuring their business after an accounting over-statement was discovered to the tune of £263 million and sales declined due to fierce competition from rival stores.
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