LONDON, Feb 9 (Reuters) - Britain’s biggest retailer Tesco is pursuing the sale of a majority stake in its data-gathering arm Dunnhumby, rather than an outright exit or flotation, a source familiar with the situation told Reuters on Monday.
Tesco said in January it would slash costs and sell assets to fund lower prices and mend its finances, as new boss Dave Lewis plots the supermarket’s fight back from years of market share losses, an accounting scandal and debt-ratings downgrades.
As part of that plan, Goldman Sachs was appointed to explore strategic options for Dunnhumby, which analysts value at between 800 million pounds ($1.2 billion) and 2 billion.
“Tesco wouldn’t want to 100 percent exit from Dunnhumby”, the source, who did not wish to be named, said. “And I don’t think there would be any sort of flotation.”
$1 = 0.6572 pounds Additional reporting by James Davey; Editing by Kate Holton and David Holmes