British Tesco signed a deal with Migros Ticaret, selling its 95.5 % stake in the Kipa chain. It will only get 30 million pounds (38 million euro) for the transaction however.
Giraffe restaurant chain sold as well
The 30 million pound sum is well below the chain's market value and once the news broke, Kipa's share on the Turkish stock exchange plummeted 20 %. Even considering this sharp drop, the company was still worth 760 million euro. The entire deal shows how eager Tesco is to pull out of Turkey, a market that apparently cost the company 20 million pounds (25 million euro) last year.
The sale of these Turkish activities is part of Tesco's new strategy, which is to focus on its local activities in the United Kingdom. It also recently sold its Korean division for 4 billion pounds (5.1 billion euro).
The British company also announced the sale of the Giraffe restaurant chain to Boparen Restaurant Holding for an undisclosed fee. Its new owner, Ranjit Singh Boparen's investment company, also owns the Harry Ramsden and Fishworks chains and Indian restaurant The Cinnamon Club in London.