Tesco'S Declining Performance Wants To Split Asia Business

It is understood that just before Tesco announced the first half of the performance of the day, chairman Richard Brudbent announced that he would resign, but the specific date has not yet been announced.

Not long ago, Tesco had changed the CEO and announced that David Lewis was the new CEO of the company.

Meanwhile, according to foreign media reports, Tesco is considering splitting Asia's business to set up an independent company to raise funds to ease financial pressure.

However, as of press time, the reporter has not yet received relevant responses from Tesco.

According to the UK's recent reports, Tesco's new CEO David Lewis and his team have put forward a series of plans to raise funds to ease the company's financial crisis. The most promising way is to divestiture high value Asian businesses and separate listing for capital market financing.

In the view of the industry, splitting Asian business financing can ensure that Tesco's "international Empire" is basically intact after obtaining substantial support funds.

It is reported that British local analysts have estimated that the value of Tesco Asian business is between 8 billion pounds and 10 billion pounds.

Tesco's embarrassing funding situation was broken down shortly after David Lewis arrived.

Last month, the group issued a statement saying that in the semi annual profit forecast issued in August, Tesco falsified the profit of 250 million pounds (US $410 million) by accounting.

Under the pressure of market opinion and other parties, Peter Dales, the former CEO, acknowledged the lack of accounting.

According to a comprehensive audit conducted by DDT accounting firm, Tesco's false number is even higher, at 263 million.

Although the internal whistle blower disclosed this financial fraud, Tesco's reputation crisis and tight capital still follow.

According to official website, Tesco has more than 1000 stores in 5 Asian countries, including China, Japan, Malaysia, South Korea and Thailand, and has expanded its business to India.

except

Besides, Korea and Thailand are the main markets of Tesco in Asia.

The daily economic news reporter learned that Tesco opened 280 stores in South Korea, including 66 super stores.

There are 614 express stores, discount stores and hypermarkets in Thailand.

For Tesco to consider breaking up the Asian market, reporters yesterday (October 28th) interviewed Tesco China and e-mail interviews with Tesco British side, but as of press time, did not receive a response.

However, the industry has told reporters that for the current Tesco, it is impossible to split up the listing and financing of Asian businesses.

Tesco's 2014 half year fiscal year results show that its pre tax profits fell by 91.9% over the same period last year, which shocked the market again.

Tesco's share price plummeted due to sluggish performance.

The company's share price has fallen by nearly 50% this year.

Buffett said in an interview with CNBC that his investment in Tesco in the past seven years was a "huge mistake".

And Richard Brudbent announced that he will resign, a month ago, after Tesco changed CEO, another high-level shock.

Analysts pointed out that Richard Bruder's departure is likely to be related to his previous misstatement of profits.

"Whether Richard Brudbent is directly involved in it is not easy to say, but things happen when he is in office, and he is to blame."

The industry generally believes that the main reason for the decline in Tesco performance is the increasingly fierce market competition, and the company is being attacked by cheap supermarkets and high-end supermarkets.

At the same time, because of its large size, Tesco is slow in responding to the price war in the industry, and its strength is not enough, so its performance is declining.

However, Ding Liguo, a senior retail expert, told reporters that the real failure of Tesco began with its entry into the US market.

"No foreign retailers have been successful in the US market. It has poured huge amounts of money into another format, but it has not been there yet."

In April 2013, Tesco announced plans to sell its American storefront.

The company said at that time that the US business had cost Tesco about 1 billion 200 million pounds (about 1 billion 800 million US dollars).

In the view of Ding Li, the future Tesco will either sell assets to increase profits in the current period, or spin off some of its business listings, and now it should be in the exploratory stage.

He said that once the way to split the listings in the future is blocked, Carrefour will continue to divest assets and ease financial pressure as well as Carrefour. Tesco is also possible.