Tesco sells 6 billion pounds worth of assets to build turnaround fund

Tesco anticipates better credit reviews as it plans to sell two of its businesses worth around 6 billion pounds. Getting past an accounting scandal and market rivalry with other discount stores are its top priority at the moment.

Tesco faced challenges in 2014 shoving the company in a "junk" status classified by Moody's in January this year. Despite its current market status, the retail giant still holds hope from business assets in the form of its South Korean business, Home Plus.

Tesco is planning to sell its Korean retailer with an estimated value of 4 billion pounds (USD 6.1B). It is also planning to sell its consumer data business, Dunnhumby that could offer an additional 2 billion pounds (USD 3B) to fund its way out of 'junk' status.

Tesco is in a 5.74 billion pound hole as of February this year after it figured in an accounting scandal in January. Lower sales in most branches along with mayhem in its administration adds to the company's worst condition in its long-standing history.

In the face of Tesco's challenging time, investors upheld their faith as shares gained 25% this year. Its CEO Dave Lewis is exhausting all possible options to regain trust from investors and customers after many people saw the accounting scandal.

The UK Serious Fraud Office is hoping to conclude this year the 263 million pounds overstatement case for Tesco. Britain's largest retail company is in constant cooperation with the SFO in hopes of closing the case sooner along with a DPA (deferred prosecution agreement).

The agreement may include filing a case against involved individuals, profit repayment and fines while the prosecution is suspended within a period of time.

Tesco has been around for 96 years and its the first time that the company goes through such challenge. Its history could be the reason why both its management and stakeholders maintain a positive outlook for the company.