Temasek said to have joined MBK in bid for Tesco's Homeplus

27th Aug 2015 09:10

(ShareCast News) - Singapore state investor Temasek Holdings has reportedly teamed up with private equity firm MBK Partners to bid for Tesco's South Korean unit, Homeplus. Reuters reported on Tuesday that MBK has already entered the race for the business, which is valued at $6bn and will compete against Carlyle Group LP and a consortium comprising Affinity Equity Partners and KKR & Co.Reuters said the move by Temasek comes more than a year after it bought almost a quarter of health and beauty retailer A.S. Watson, backed by Hong Kong tycoon Li Ka-shing, for about $5.7bn in its single biggest investment.Reuters cited people familiar with the matter as saying that Temasek's entry marks a rare instance where the fund is bidding against fellow Singapore sovereign wealth fund GIC, which has joined up with Carlyle.Tesco is looking to sell Homeplus in an attempt to cut its £22bn debt and fund a turnaround plan as it recovers from an accounting scandal and market share losses to discount chains.At 0927 BST, Tesco shares were up 1.6% at 189.25p.