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CP Group splashes B332bn to buy Tesco Thailand, Malaysia ops

CP Group splashes B332bn to buy Tesco Thailand, Malaysia ops

LONDON: Britain’s biggest retailer Tesco said Monday (Mar 9) that it has agreed to sell its businesses in Thailand and Malaysia to Thai conglomerate CP Group for £8 billion (B332.78 billion).

economics
By AFP

Monday 9 March 2020, 02:28PM


Tuk-tuks wait for customers outside a Tesco-Lotus supermarket in Bangkok. Photo: Mladen Antonov / AFP

Tuk-tuks wait for customers outside a Tesco-Lotus supermarket in Bangkok. Photo: Mladen Antonov / AFP

"Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia," said Chief Executive Dave Lewis in a statement, adding that the supermarket chain would return £5.0 billion of the proceeds to shareholders.

This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders."

Tesco added that the divestment will also slash debt and streamline the group, enabling a "stronger focus" on UK, Irish and central European activities.

"The disposal will further de-risk the Tesco business by reducing indebtedness through a £2.5-billion pension contribution that, along with other measures, is expected to eliminate the current funding deficit and significantly reduce the prospect of having to make further pension deficit contributions in the future," the retailer said.

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The move was unanimously agreed by the Tesco board, but remains conditional on shareholder and regulatory approvals. The deal is set to complete in the second half of this year. 

The announcement comes as Dave Lewis prepares to step down in 2020, having overseen a major overhaul at Tesco during his five years at the helm, axing thousands of jobs as part of a massive cost-cutting programme.

Lewis is leaving for personal reasons and will be replaced by Walgreens Boots Alliance executive Ken Murphy.

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Kurt | 11 March 2020 - 11:34:29

My point is that it appear a number of foreign Firms don't see future in remaining/investing  in Thailand. They pull the plug and leave. What they not would do if they were seeing future business prosperity. But you can make of it what you want. Feel free.

ematt | 10 March 2020 - 20:10:28

What we are all “waiting for” Kurt is for YOU to leave Thailand, lol. 

Jor12 | 10 March 2020 - 17:39:38

And why should normal business dealings be of any concern to Thailand? It was a Thai company, bought by English investors, now being bought by Thai Investors. Given that you state we all know, you still haven't haven't enlightened us regarding your total grasp of economics. What is your point?

Kurt | 10 March 2020 - 16:11:04

ah yah, Chevrolet, not Ford. But just wait for next foreign business leaving Thailand, boys.

Jor12 | 10 March 2020 - 12:21:26

k...Ford?? You say we know why. I don't know why perhaps you could enlighten us?

Pascale | 10 March 2020 - 09:53:47

K,Ford still exists in Thailand ! You seem  a bit confused. 

Kurt | 09 March 2020 - 15:52:25

First Ford Cars, now Tesco. We all know why. Who foreign is next?

 

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