Tesco are still selling bits of itself to anyone who'll have it
MBK are North Asia’s biggest buyout firm, and Dave Lewis, Tesco chief executive, said: "This sale realises material value for shareholders and allows us to make significant progress on our strategic priority of protecting and strengthening our balance sheet."
'Strengthening the balance sheet', in plain English, means that 'we're having to try and sort out the countless cock-ups we've done.
Tesco are going to get £3.35bn in cash, in a mixture of US Dollars and Korean Won, once the authorities have taken away tax and costs. The bad news for Tesco, is that the South Korean arm was seen as something of a 'crown jewel' for the company, in terms of international business. And now they've had to sell it off, like someone flogging their possessions on eBay because they're skint.
That said, there's still work to be done - this sale will see Tesco's debt reduced from £21.7bn to around £17.5bn. That's still a dizzying amount of money to make back.
A couple of months ago, Tesco revealed a £6.4bn pre-tax loss, which is the biggest corporate loss in UK history, which is everything to do with the £7bn write-down and £326m accounting farce.
They've still got to sell bits of it off in a hope of getting themselves sorted again. They are looking at selling their ClubCard business to a Chinese firm, but the value has been halved, so it looks like the road is long for the ailing retailer.