Tesco to sell Thailand and Malaysia businesses in $10.6bn disposal deal

Supermarket giant Tesco has announced the proposed sale of its businesses in Thailand and Malaysia in a deal worth $10.6bn.

The firm is set to sell its Thai and Malaysian interests, known as Tesco Lotus, to a combination of CP Group entities, including C.P. Retail Development Company Limited, Charoen Pokphand Holding Co., CP All Public Limited Company and C.P. Merchandising Co.

The disposal, which is expected to go ahead in the second half of 2020 subject to approval, will see shareholders receive £5bn via a special dividend.

Dave Lewis, chief executive of Tesco, commented: “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 am confident that the agreement we have reached with CP Group presents an exciting opportunity for their continued success.”