Tesco agrees to sell its businesses in Thailand and Malaysia; significant return to shareholders, simplification and further de-risking


  • Proposed sale of Tesco’s businesses in Thailand and Malaysia to a combination of CP Group entities, namely C.P. Retail Development Company Limited, Charoen Pokphand Holding Co., Ltd, CP All Public Limited Company and C.P. Merchandising Co., Ltd (“CP Group”) (the "Disposal"), following inbound interest received and a detailed strategic review
  • Consideration for the Disposal represents an enterprise value of $10.6 billion (equivalent to £8.2 billion) on a cash and debt free basis, implying an EV/EBITDA multiple of 12.5x1
  • Net cash proceeds of $10.3 billion (equivalent to £8.0 billion) before tax and other transaction costs
  • Following completion of the Disposal, the Board intends to return c.£5.0 billion to shareholders via a special dividend with associated share consolidation
  • 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
  • Disposal unanimously agreed by Tesco Board to be in the best interests of all stakeholders
  • Completion of the Disposal, which is conditional on Tesco shareholder approval and customary regulatory approvals in Thailand and Malaysia, is expected during the second half of 2020
  • The Disposal will further simplify the Tesco Group, enabling a stronger focus on driving cash generation and returns to shareholders from our retail businesses in the UK and Ireland and in Central Europe

Dave Lewis, Chief Executive of Tesco, said:

"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."

This summary should be read in conjunction with the full text of this announcement. This announcement is available at A circular containing details of the Disposal and a notice convening a general meeting of the Company will be sent to Tesco shareholders as soon as is practicable.

View the full release


Investor Relations: Chris Griffith 01707 912 900
Media: Christine Heffernan 01707 918 701
  Philip Gawith (Teneo) 0207 420 3143


Greenhill & Co. International LLP
Joint Financial Adviser
Goldman Sachs International
Joint Financial Adviser
Barclays Bank PLC
Joint Financial Adviser, Sponsor and Corporate Broker
(020 7198 7400) (020 7774 1000) (020 7623 2323)
  • David Wyles
  • Charles Gournay
  • Anthony Gutman
  • Milan Hasecic
  • Nick Harper
  • Alisdair Gayne
  • Omar Faruqui
  • Nicola Tennent



  1. Based on the financial year ended 23 February 2019 on a post-IFRS 16 basis.


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