Tesco rejected bid approach from TPG for Dunnhumby marketing subsidiary months ago
Tesco plc has rejected a bid approach from the private equity firm TPG for the listed UK-based supermarket group’s Dunnhumby marketing subsidiary, Sky News reported. TPG approached Tesco regarding Dunnhumby while previous Chief Executive Philip Clarke was still managing the supermarket group, the item added, citing an unspecified source for the claim.
The report cited insiders who said TPG is still interested in Dunnhumby despite Tesco’s rejection of its offer. TPG and Tesco had not entered into formal discussions, the item added.
Tesco is currently conducting a strategic review, and its future ownership of Dunnhumby is under consideration as part of that review, the article said.
Bankers cited by the report said Dunnhumby is worth considerably more than GBP 2bn (EUR 2.54bn), with some bankers estimating a valuation of up to GBP 3bn.
Other buyout groups and large marketing companies are likely to make offers for Dunnhumby should Tesco begin a formal sale process for the subsidiary, the item continued.
Separately, the report cited analysts who said Tesco might try to sell its Asian and Central European businesses, its UK-based garden centres operations and its banking subsidiary.
TPG and Tesco refused to comment on Monday, 6 October, the item said.
Source Sky News