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CPPIB Takes Stake in Tesco’s South Korean Retailer
Canada Pension Plan Investment Board has acquired a 21.5% stake in Homeplus, Tesco’s South Korean business, for US$534M. CPPIB made the acquisition as part of an MBK Partners-led consortium, and the total transaction value's US$6B. Homeplus, with over 1,000 retail outlets across the country, is one of Korea’s largest multi-channel retailers and the No. 2 player in hypermarkets and supermarkets. The deal provides CPPIB access to one of Asia’s largest retail markets via a “well-established business with a strong cash flow profile,” the board said, noting it's invested in South Korea since 2008.
