Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 21.5% stake in Homeplus, Tesco’s South Korean business, for US$534 million ($707.9 million).
CPPIB made this acquisition as part of a consortium led by MBK Partners. The total transaction value is about US$6 billion ($7.95 billion).
Operating in South Korea since 1999, and with more than 1,000 retail outlets across the country, Homeplus is one of the largest retailers in the country.
Read: CPPIB invests in South Korea, Germany
“We are pleased to invest alongside our longstanding partner, MBK Partners, in one of the leading retailers in South Korea,” says Pierre Lavallée, senior managing director and global head of investment partnerships, CPPIB. “Homeplus is an attractive investment for CPPIB as it provides us with access to one of the largest retail markets in Asia through a well-established business with a strong cash flow profile.”
CPPIB has been investing in South Korea since 2008.
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