UK’s retail giant Tesco Plc. has agreed to sell its businesses in Thailand and Malaysia, which is comprised of Tesco’s entire shareholding in Tesco Stores Thailand Limited, Tesco Stores Malaysia Sdn Bhd and any respective subsidiaries, to Thai conglomerate Charoen Pokphand Holding Co., Ltd., serves as a parent company of the CP Group, for $10.6 billion (app. £8.2 billion).
”The Board believes the disposal will realise a significantly higher value than could be generated from Tesco’s continued ownership and investment. It will also enable the Group to return significant proceeds to shareholders, with c.£5.0 billion expected to be returned via a special dividend, and to further de-risk the business by reducing indebtedness through a significant pension contribution of £2.5 billion,” said in the statement.
“Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia. This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders. I would like to thank all of our Tesco Thailand and Tesco Malaysia colleagues for their dedication, professionalism and service to our customers, which has resulted in the creation of such a strong business. I am confident that the agreement we have reached with CP Group presents an exciting opportunity for their continued success,” said Dave Lewis, Chief Executive of Tesco.
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