Tesco Plc agreed to sell its South Korean business to a group led by private-equity firm MBK Partners Ltd. for £4 billion ($6.1 billion), the UK grocer’s first major disposal as it seeks to ease the strain on its debt-laden balance sheet, Bloomberg reported. The purchase will reduce borrowings by £4.23 billion, Tesco said in a statement Monday. The group includes the Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings (Private) Ltd. Tesco rose as much as 2% in early London trading. The sale represents a landmark for Tesco Chief Executive Officer Dave Lewis in his efforts to revive the struggling retailer.
