Tesco looks set to sell off its mobile business to recoup some much-needed capital, a new report claims.
According to the Financial Times, Tesco hopes to sell of the supermarket chain’s ‘non-core assets’.
Tesco is currently going through tough fiscal times, having recently reported staggering losses in the region of £6 billion. That’s a pretty big hole to mend.
Selling off the mobile business could be a way to do that, and talks to flog the division are reportedly already underway.
According to people ‘with knowledge of Tesco’s operations’, the business could be worth hundreds of millions of pounds.
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Tesco Mobile is currently the largest branded mobile service in the UK, making it a lucrative business opportunity for potential buyers.
The cellular network, which is actually only 50 per cent owned by Tesco proper, holds 4 per cent of UK subscribers.
The remaining 50 per cent is owned by O2, which provides the network infrastructure for Tesco Mobile.
Tesco Mobile also operates upwards of 250 Tesco Phone shops, adding further value to the company.
Through these outlets, Tesco sells two million handsets a year, which marks it as a serious contender in the smartphone space.
Tesco has made no official comment on the matter.