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Tesco shares jump on possible Asia unit sale

Credit: Reuters Studio
Published on December 9, 2019 - Duration: 00:58s

Tesco shares jump on possible Asia unit sale

Shares in Tesco jumped Monday after it said it was reviewing its operations in Thailand and Malaysia.

Julian Satterthwaite reports.

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Tesco shares jump on possible Asia unit sale

Tesco shares soared Monday (December 9).

Up close to 6% in early trade.

That was nothing to do with business at its core UK supermarkets.

But about what might happen six thousand miles away.

The retail giant said Sunday (December 8) it was reviewing its operations in Thailand and Malaysia.

That after it received expressions of interest in the units, which generate about 10% of its profits.

Tesco wouldn't give details of the approach.

But analysts at Bernstein say the Asian operations could be worth over nine billion dollars.

The firm is five years into a UK-focused recovery plan launched by boss Dave Lewis.

It came after an accounting scandal capped a big downturn in trading.

Tesco has already sold units in South Korea and Turkey.

Any new sale would raise questions about its remaining overseas operations in central Europe.

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