Tesco says all conditions have been satisfied for sale of Asia business
Tesco has confirmed that all conditions have been satisfied for the sale of its businesses in Thailand and Malaysia to CP Retail Development Company.
In a statement, the supermarket also said CP Group has now reviewed and is satisfied with the formal notice of approval from the OTCC in Thailand. Following the approval received from the Ministry of Domestic Trade and Consumer Affairs in Malaysia on 10 November, there are now no further conditions outstanding.
Having agreed the £8.2 billion deal back in March, Tesco is expecting it to complete on or around 18 December.
Tesco group chief executive Ken Murphy said: “I would like to thank all our colleagues in Asia for their hard work and dedication to our customers over many years. They have built a very strong business. I’m confident that the agreement with CP Group will ensure that they are well setup for continued success. This sale allows us to focus on our businesses across Europe and to continue delivering for customers, make a significant contribution to our pension deficit and return value to shareholders.”
As previously announced, Tesco is planning to return around £5 billion of the net proceeds from the sale to shareholders via a special dividend, together with a share consolidation. On completion of the sale, it will also make a £2.5 billion contribution to the Tesco Pension Scheme.
