- Supermarket giant Tesco has announced the sale of its business in Poland to Salling Group, including 301 stores, for a total enterprise value of PLN 900m (£181m), following 'market challenges'.

Tesco said that the sale, which is subject to antitrust approval, would deliver total net proceeds of approximately PLN 819m, equivalent to £165m, settled in cash, with completion expected in the current financial year.

Chief executive Dave Lewis said: 'We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland.

'Today's announcement allows us to focus in the region on our business in Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the group.'

Tesco reported that in the 2019/20 financial year, the 301 stores in Poland being sold generated sales excluding VAT and PFS of £947m and a loss before tax of £107m.

The transaction includes the stores, together with the associated distribution centres and head office.

Tesco said it had made 'good progress' in selling its remaining Polish property outside of this agreement, with the group having either sold or agreed to sell 22 stores for net proceeds of £200m over the past 18 months.

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