Tesco Kipa to sell 10 stores to Turkish retailer Beğendik for $13.3 million
by Daily Sabah
ISTANBULSep 09, 2015 - 12:00 am GMT+3
by Daily Sabah
Sep 09, 2015 12:00 am
Turkish retailer Beğendik, which earlier acquired German retailer Metro's Turkish division Real in 2014, announced on Wednesday it will acquire 10 stores from the U.K.-based retailer Tesco's Turkey division, Tesco Kipa, for TL 40 million ($13.3 million).
Tesco Kipa will exit from Turkey's capital and second-largest city, Ankara, following the sale, as all seven stores located in city will be rebranded, Turkish daily Habertürk reported. Two stores in Ankara will operate under the Beğendik brand while the remaining stores in the city will be rebranded as Real. The remaining stores are located in the Mersin and Denizli provinces.
Beğendik currently has 45 stores concentrated in central Turkey, while Real operates 13 stores mainly in the Istanbul and Kocaeli provinces, along with stores in the southern provinces.
It was reported earlier that Tesco is now evaluating options to sell off its Central and Eastern European businesses to reduce its debt, including those in Turkey, after the announcement of the sale of its South Korean affiliate Homeplus for $6.1 billion.
Habertürk's article said Tesco Kipa officials dismissed reports on quitting the Turkish market, and they will focus instead on Turkey's western Aegean region where the company has a strong market presence. Meanwhile, the Habertürk article forecasts that Beğendik may seek to acquire the remaining 172 stores of Tesco Kipa in the future, which has an estimated market value of TL 2.5 billion ($830 million).