UK retail giant Tesco has agreed to sell its operations in Thailand and Malaysia for US$10.6 billion, reported the Financial Times.
The supermarket chain has 2,000 stores across both countries, under the Tesco Lotus brand, and is selling them to Thai conglomerate CP Group.
Chief executive Dave Lewis said the sale would allow Tesco “to further simplify and focus” its business. He also said £5 billion (US$6.55 billion) of the proceeds would be returned to shareholders via a special dividend.
Tesco revealed in December it had received interest for its Asian stores, which employ about 60,000 people, but did not reveal the bidders.
Tesco’s only other overseas stores are in Ireland and in central Europe, including Poland and Hungary.
The retailer added that the sale would also slash debt and streamline the group, enabling a “stronger focus” on UK, Irish and central European activities.
The proposed sale was unanimously agreed by the Tesco board, but needs approval from shareholders and regulators. The deal is set to be finalised in the second half of this year.
Full Content: Financial Times
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