CP group gets winning bid for Tesco Asia stores for 10.6 billion US dollars

Tesco has accepted a US$10.6 billion bid for its Asian businesses from a consortium of companies controlled by Thai billionaire Dhanin Chearavanont.

The deal, which remains subject to regulatory approval and Tesco Group shareholder approval, will be completed in the second half of this year.

The price represents an earnings multiple of 12.5 times and marks a significant premium on analysts’ estimates of the business being worth about $9 billion.

The CP Group entities which will buy the assets – Tesco Lotus in Thailand and a joint venture with Sime Darby in Malaysia – are CP Retail Development Company, Charoen Pokphand Holding Co, CP All Public and CP Merchandising Co. CP All runs the vast network of 7-Eleven stores across Thailand.

Assuming shareholder approval for the deal, Tesco plans to return around £5 billion (US$6.59 billion) to shareholders via a special dividend.

“This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders,” said outgoing Tesco CEO Dave Lewis.

Contributions from Associated Press.

Mr. Adam Judd is the Co-owner of TPN Media since December 2017. He is originally from Washington D.C., America, but has also lived in Dallas, Sarasota, and Portsmouth. His background is in retail sales, HR, and operations management, and has written about news and Thailand for many years. He has lived in Pattaya for over nine years as a full-time resident, is well known locally and been visiting the country as a regular visitor for over a decade. His full contact information, including office contact information, can be found on our Contact Us page below. Stories please e-mail Editor@ThePattayanews.com About Us: https://thepattayanews.com/about-us/ Contact Us: https://thepattayanews.com/contact-us/