LONDON - The UK's biggest retailer, Tesco, is considering a retreat from markets in Asia with the sale of its profitable operations in Thailand and Malaysia.

Analysts say the 2,000 stores, which operate under the Tesco Lotus brand, could be worth more than £7bn.

The company's only other overseas stores, other than Ireland, are in its loss-making European unit.

Tesco said it was reviewing its Thai and much smaller Malaysian arms after interest from potential bidders.

In a statement, the retailer said it had had received "inbound interest", but did not name the potential buyer or buyers. Tesco Lotus employs about 60,000 people.

The statement also said the review was at an early stage, and "no decisions concerning the future of Tesco Thailand or Malaysia have been taken".

The businesses had combined revenues of £4.9bn in the year ending in February, making a profit of £286m - about a fifth of Tesco's total global profits.

Clive Black, an analyst at Shore Capital, said the Asian operation was a "trophy asset", and was likely to achieve a knock-out price.

A valuation of £6.5bn to £7.2bn seemed "fair", according to Bruno Monteyne, analyst at Bernstein.

Laura Lambie, senior investment director at Investec Wealth and Investment, told the BBC's Today programme that Thailand was an important market for Tesco.

While Tesco had already withdrawn from "more mature markets" such as the US, Japan and Turkey, it had recently announced plans to open another 750 stores in Thailand, she said.

Margins in Thailand were also higher, at 6%, compared with 3% for the UK, she added. "There will have to be a fairly high asking price for Tesco to be prepared to let it go."(FA)