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Tesco mulls £1bn float of banking arm

Tesco is considering a partial float of Tesco Bank in a bid to raise much-needed capital of between £50m and £1bn.

The troubled supermarket is in the early stages of examining a float of its banking arm as well as the sale of its Asian operations, according to The Telegraph.

Analysts estimate the Asian businesses would be worth between £8bn and £10bn. Tesco’s largest operations in the region are in Thailand, where it has 1,700 stores under the Tesco Lotus brand, and South Korea, where it has more than 400 Homeplus stores. It also has a strong presence in Malaysia.

In 2008, Tesco paid nearly £1bn to buy out joint venture partner Royal Bank of Scotland. Tesco Bank has around 6 million customers and employs more than 4,000 staff.

Tesco’s loss making Blinkbox video streaming service is currently being sold with city advisory firm Lepe Partners handling the sale.

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