Tesco chairman John Allan has ruled out any more major international disposals in the short term following the sale of Homeplus in South Korea.

Tesco Homeplus in South Korea

Allan told a Tesco shareholder’s meeting, where the grocer’s $6.1 bn (£4.03bn) sale of its South Korean arm was approved, that he had not discussed any further overseas sales, Reuters reported.

As well as South Korea, Tesco has pulled out of the US and Japan and sold a stake in its Chinese business in recent years. Some observers have speculated the grocer would sell off more international assets as it aims to get its core UK arm on track.

Potential suitors had expressed interest in Tesco’s Thai and Malaysian businesses earlier this year.

Tesco also has sizeable businesses in central Europe.

“As we sit here today we believe that we have the right sort of assembly of geographies that we are in,” said Allan.

“At the moment our intention is to hold what we have and to develop it and make the very best of it.”

However, he added: “I can envisage circumstances under which that might change.”

Rights issue

Some in the city have suggested Tesco may need to launch a rights issue in order to strengthen its balance sheet, but Allan said the South Korean deal reduces the need for such action.

Although he did not rule out any fundraising he said: “Actually we want to get our balance sheet in shape as much through our own efforts as we can, without calling on shareholders to put more of their money into the company.”

Tesco chief executive Dave Lewis has been trying to sell data arm Dunnhumby since the start of the year but a buyer has not yet materialised.

“We have looked at the options around Dunnhumby…We’ve not concluded that. As soon as we conclude it we would announce what it is we intend to do,” Lewis told shareholders.