Tesco is offloading part of its stake in South East Asian ecommerce platform Lazada to etail titan Alibaba for $129m (£90.5m).
The supermarket giant’s subsidiary, Tesco Overseas Investments Limited, has agreed to sell an 8.6% equity shareholding in Lazada – a business that provides a “gateway” for local and international sellers in South East Asia – as it continues its drive to shed non-core assets.
Alibaba’s acquisition forms part of wider deal that will see the Chinese giant invest around $500m (£350.9m) in Lazada and become its controlling shareholder.
Tesco, which first invested in Lazada back in November 2013 and has ploughed £124m into the business, will retain an 8.3% shareholding in the etailer following the transaction.
The grocer said it will use proceeds from the transaction “for general working capital purposes” after admitting its shareholding in the business was “an available-for-sale financial asset.”
Tesco added that Lazada had “no impact” on its profit for the year to February 28, 2015 but added that, as of August 29, it held a value of £113m in its accounts.
News of the sale comes 24 hours before Tesco unveils its full-year results.
The supermarket giant’s boss Dave Lewis has been keen to focus on gaining momentum within the retailer’s UK business and offload non-core assets such as its Blinkbox streaming service and its South Korean Homeplus chain.
Reports have also suggested that Tesco could seek to sell its Giraffe restaurant business, Dobbies Garden Centres and the Harris + Hoole coffee shop chain, all of which recorded losses in their latest financial updates.
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Tesco sells stake in Lazada to Alibaba as it sheds more non-core assets