CHESHUNT (dpa-AFX) - Tesco Plc (TSCO.L, TSCDY.PK) said it agreed to sell its business in Poland to Salling Group A/S. The transaction includes the sale of 301 stores together with the associated distribution centres and head office. Total enterprise value for the deal is PLN 900 million or 181 million pounds.
The move allows the company to focus in the region on its business in Czech Republic, Hungary and Slovakia, where it has stronger market positions, Tesco said in a statement.
Dave Lewis, Chief Executive of Tesco, said, 'We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland.'
The company expects to complete the sale in the current financial year and will use proceeds from the sale for general corporate purposes.
In addition, the company said it has made good progress in selling its remaining Polish property outside of this transaction. Over the past 18 months, the Group has either sold or agreed to sell 22 stores for net proceeds of 200 million pounds.
The company will continue to seek to realise fro valuem the remaining assets, which include 19 currently trading stores not covered in this transaction.
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