Tesco (LON:TSCO) announced on Monday that it is considering selling the Asian arm of its business, sending shares up.
Shares in the supermarket chain climbed almost 5% during Monday morning trading.
Tesco, whose current CEO is set to leave in summer 2020, confirmed in a statement that it has commenced a review of the strategic options for the Asian arm of its business in Thailand and Malaysia.
It said that a possible sale of these businesses is on the table.
The supermarket chain added, however, that the review is at an early stage, and that it is not certain that it will result in a sale.
Tesco said that it will continue to update investors when appropriate.
The brief statement read:
“Tesco PLC confirms that, following inbound interest, it has commenced a review of the strategic options for its businesses in Thailand and Malaysia, including an evaluation of a possible sale of these businesses.”
The statement continued: “The evaluation of strategic options is at an early stage, no decisions concerning the future of Tesco Thailand or Malaysia have been taken, and there can be no assurance that any transaction will be concluded. A further announcement will be made if and when appropriate.”
In the UK supermarket sector, data from Kantar revealed in November that growth had slowed for supermarkets as political uncertainty and the wet autumn weather dampened sales.
Elsewhere, Sainsbury’s (LON:SBRY) posted a decline in profits in its half year results.
Shares in Tesco plc (LON:TSCO) were up on Monday, trading at +4.95% as of 11:04 GMT.