Tesco has confirmed the offload of its Polish business through its sale to Salling Group A/S.
The transaction includes the sale of 301 stores, as well as its associated distribution centres and head office.
The deal had a total value of zł900m (£181m), with total net proceeds expected to be zł819m (£165m). According to Tesco, the transaction should be completed within the current financial year.
In addition, Tesco has made “good progress” in selling its remaining Polish property outside of this transaction. Over the past 18 months, it has either sold or agreed to sell 22 stores for a total of £200m.
Dave Lewis, CEO of Tesco, 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.”
He added: “I would like to thank all of our Tesco Poland colleagues for their dedication to serving customers in Poland over many years. The energy and commitment they have shown over the past two years transforming Tesco Poland to a two-format business has been incredibly impressive.
“We see this transaction as the best way to secure the future of the business for our colleagues and customers in Poland.”
Earlier this year, Tesco further offloaded its estate through the sale of its Thai and Malaysian businesses in an £8bn deal.
The portfolio of over 2,000 stores under the Tesco and Lotus brands was acquired by Thai conglomerate CP Group.