Tesco appoints bank for Dunnhumby sale, rebuffs Thai Lotus unit bid

As it looks to ease pressure on its balance sheet, Tesco has reportedly appointed Goldman Sachs to pursue a disposal of a significant stake in its customer data analysis subsidiary Dunnhumby, but has recently turned down an approach for its Thai business.

The supermarket group has, according to a source quoted by Reuters, decided not to float Dunnhumby on the stock market nor pursue an outright exit.

The unit, which crunches the data behind Tesco's Clubcard loyalty scheme, has been variously valued at sizes between £0.8bn and £2bn.

"It would either be a trade or strategic buyer, or private equity buying a majority stake and Tesco keeping the rest," the source was reportedly to have said.

The newswire also revealed that Thailand's second richest man, foods tycoon Dhanin Chearavanont, was working on an improved bid for Tesco Lotus after his first approach for the $10bn unit saw him leave the December talks empty handed, local sources said.

Analysts at Shore Capital applauded the patient approach Tesco's chief executive Dave Lewis was taking.

Of the Dunnhumby plans, the broker said: "Such a decision, which is not confirmed by the company would suggest to us that a patient and steady approach is being applied by Tesco given its need to de-leverage and the pressure from credit rating agencies in recent times to strengthen its balance sheet through downgrades to its credit rating."

Analysts Clive Black and Darren Shirley believe Tesco Thailand, alongside Homeplus in Korea, which has just signed an agreement to implant Mothercare stores, are the "jewels in Tesco’s international crown".

"As such, whilst de-leveraging could take place very rapidly through disposal, future growth would be materially curtailed by any sale. Again, Tesco has made no comment on this Thai story but for now we believe that a broadly intact international portfolio remains the preferred option."