June 7, 2016 / 8:10 PM / 3 years ago

Tesco set to sell Kipa, Giraffe businesses - Sky News

A Tesco employee prepares the salad bar outside the Giraffe restaurant at a Tesco Extra supermarket in Watford, north of London August 8, 2013. REUTERS/Suzanne Plunkett

(Reuters) - Britain’s biggest retailer Tesco Plc (TSCO.L) is likely to announce this week a sale of its Turkish unit Kipa KIPA.IS and British restaurant chain Giraffe, Sky News reported on Tuesday.

Tesco is selling Kipa to Turkish rival Migros Ticaret (MGROS.IS), while Giraffe is being sold to an unidentified buyer which already has restaurant assets in Britain, Sky reported, citing sources.

Kipa said in May there had been confidential talks between Tesco and Migros but the parties had not been able to reach an agreement.

Tesco declined to comment. Migros could not be reached for comment outside regular business hours.

Sky reported in April that Tesco was planning to sell some of its businesses, including Giraffe, to focus on reviving its main grocery business.

Tesco, under Chief Executive Dave Lewis, has been seeking to cut debt and shed its loss-making businesses after its profits were battered by an accounting scandal and British market share losses to rivals.

When Lewis took the helm at Tesco in 2014, analysts had speculated the firm’s stake in Giraffe could be sold. In the first large divestment by Lewis, Tesco sold its biggest overseas unit Homeplus last year.

Reporting by Ismail Shakil in Bengaluru; editing by Adrian Croft

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