Private equity firm Penta Investments will exit its investment in Polish retail chain Zabka, selling the company to British retailer Tesco, Reuters reported, citing an article in the Polish daily Puls Biznesu. The value of Zabka’s 2,350 convenience stores are estimated at about $560 million. Negotiations for the acquisition are still ongoing, said Reuters.
(Reuters) – Tesco, Britain’s top retailer, will buy Poland’s retail chain Zabka from private equity firm Penta Investments, a Polish daily Puls Biznesu reported without citing sources.
The purchase would significantly boost Tesco’s position in central and eastern Europe, adding one of Poland’s largest retail chains with more than 2,350 Zabka convenience stores, valued at $560 million, to its portfolio.
“Negotiations are still ongoing and we will not comment,” said Jozef Janov, managing director at Penta.
Tesco, which was not immediately available for comment, paid some 1 billion Czech crowns ($55.93 million) for Penta’s Czech Zabka chain in December.
Earlier this month, Czech magazine Euro reported that Penta was close to selling the Polish chain to private equity group BC Partners. ($1=17.88 Czech Crown) (Reporting by Chris Borowski and Agnieszka Barteczko in Warsaw and Mark Potter in London; Editing by Jon Loades-Carter)