Proactive Investors - Tesco PLC, Britain's biggest supermarket chain, plans to kick off a review of its presence in the UK banking sector, a move that could lead to a sale of Tesco Bank, according to a report.
Sky News said it has learnt that the FTSE 100-listed grocer has lined up Goldman Sachs to advise on the future of its banking arm, which it launched in 1997.
City insiders said this weekend that the review was at a very preliminary stage and may not lead to a formal sale process.
One source suggested that a partial sale or joint venture could also be an option for the retailer.
A banking analyst suggested that if it was sold, Tesco Bank could be worth more than £1bn based on its book value. The company has more than 5mln customers, offering products including pet insurance, savings accounts and credit cards.
Based in Edinburgh, Tesco Bank employs 3,800 people and generated adjusted operating profits of £67mln in its last half-year results.
There is no suggestion that the review of the business could result in any form of wind-down or job losses, Sky News noted.