27th Aug 2015 13:01
LONDON (Alliance News) - Tesco PLC is planning to receive a USD844 million dividend from its Homeplus business in South Korea in order to bring down the cost of the business for the suitors interested in acquiring it, the Financial Times reported.
Three private equity bidders, comprising MBK Partners, Carlyle Group and an Affinity-KKR consortium, have submitted final bids for the business.
But Tesco is now considering taking a dividend payment for the company in order to bring down the sale price and get the divestment completed, the FT said, citing a source close to the matter.
The source told the FT that Tesco's decision to take the dividend from Homeplus would ease the financial burden for the buyer and would reduce Tesco's tax burden for the expected profit from the sale.
Shares in Tesco were up 1.8% at 189.55 pence Thursday afternoon.
https://next.ft.com/e0db2bdc-4c8a-11e5-a089-1a3e2cd1819b
By Sam Unsted; [email protected]; @SamUAtAlliance
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