SOUTH KOREA - Tesco's South Korea chain, Homeplus, is wearing a $6 billion price tag, and a South Korea-based snack making company announced on Monday that it may be willing to pay it.
"Our stores are serviced by three Distribution Centres, the largest of which, the Hamahn Fresh Distribution Centre, is the largest fresh distribution centre in Asia processing more than 40 million boxes per year," Tesco states on the Homeplus branch of its website.
According to a Reuters report, Orion Corp., a maker of confectionery and snacks based in South Korea, is considering making a bid to Tesco but has not made any decisions. The company did receive a memorandum of information about the sale of the retailer’s Homeplus unit, but has not pursued making a formal offer.
Tesco has hired HSBC, according to Reuters, to explore the sale of its South Korean chain. Homeplus is a discount retail, currently one of the largest retailers in the country at more than 400 stores, according to the BBC. This makes the chain Tesco’s largest outside of the United Kingdom.
The retailer announced it was selling the unit earlier this month, having approached a number of private equity firms including:
- KKR & Co
- Carlyle Group
- CVC Capital Partners
Stay tuned to AndNowUKnow as we keep you up to date on this developing story.
