(Sharecast News) - Tesco said on Friday that it has agreed to sell its businesses in the Czech Republic and Slovakia to Dutch retailer Ahold Delhaize in a €1.7bn (£1.5bn) deal.
The transaction includes all stores and offices in the Czech Republic and Slovakia, and distribution centres in Kralupy, Presov and Beckov.
Tesco expects net cash proceeds of €1.2bn (£1bn) before tax and other transaction costs, which it plans to return to shareholders in the form of an incremental share buyback following completion.
Chief executive Ken Murphy said: "For Tesco, the transaction will further simplify the group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders.
"Until the transaction completes, our businesses in the Czech Republic and Slovakia remain part of Tesco and our priority remains to continue serving customers and supporting colleagues."
The deal is expected to close in the second half of next year.
At 0950 GMT, Tesco shares were up 1.2% at 537.60p.
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